Top 5 five-year fixed rate bonds - Savings - News - Moneyfacts

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Top 5 five-year fixed rate bonds

Top 5 five-year fixed rate bonds

Category: Savings

Updated: 13/06/2013
First Published: 13/06/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Locking your money away for up for a long period can be a great way to achieve the most competitive rate of return on your savings.

As with many fixed-rate savings products, these bonds will often prohibit early withdrawals, so you must be willing to tie up your savings for the duration of the term.

With the savings market changing on a regular basis, it is always wise to check out our best buy tables regularly.

Here are the best five-year bonds:


Virgin Money
Fixed Rate E-Bond Issue 43

3.00% AER/Gross
  • Monthly interest paid at 2.96% gross
  • Investments between £1 and £1 million
  • Further additions allowed whilst issue is open
  • Early access not permitted
  • Account can be operated online only

Penny saysPenny says…
"A revised rate of 3.00% has seen this five-year bond catapulted to the top of the long-term bond market.

"This market-leading deal should prove popular with savers who prefer to conduct their finances online and who are committed to locking their funds away for the full five-year term."

First Save
5 Year Fixed Rate Bond 2nd Issue

2.90% AER/Gross
  • Monthly interest of 2.86% paid
  • Minimum investment £1,000 and £2 million (£5,000 for monthly interest)
  • Further additions and early access not allowed
  • Account can be operated online only

Penny saysPenny says…
"Taking the silver position in the five-year bond market, this deal from FirstSave pays highly competitive annual and monthly rates of return.

"Savers must be aware that a higher investment of £5,000 is required when receiving interest on a monthly basis and that further additions are not permitted whilst the issue is open."


ICICI Bank UK HiSAVE Fixed Rate Account

2.75% AER/Gross
  • Monthly interest paid at 2.72% gross
  • Minimum investment of £1,000
  • Further additions and early access not allowed
  • Account can be operated online only

Penny says

Penny says…
"This online only bond sits comfortably in third place, with competitive rates paid on its anniversary and on a monthly basis.

"An additional HiSAVE Savings account must be automatically opened for the administration of maturity proceeds."

Shawbrook Bank
5 Year Fixed Rate Bond Issue 6

2.75% AER/Gross
  • Minimum investment £5,000 and £2 million
  • Further additions allowed whilst issue is open
  • Early access not permitted
  • Account can be by post or telephone

Penny saysPenny says…
"Savers with larger deposits of £5,000 and over will be pleased with this bond from Shawbrook Bank.

"Early access to funds is not permitted, so savers must be prepared to tie their money up for the duration of the five-year term."

Vanquis Bank
Vanquis Bank
High Yield

2.56% AER/Gross
  • Monthly interest of 2.53% paid
  • Minimum investment £1,000 and £250,000
  • Further additions and early access not allowed
  • Account can be operated online only

Penny saysPenny says…
"This online only five-year bond squeezes into the top five of the market.

"Savers must invest as much as possible when opening the account, as no further additions can be made whilst the bond is open."

Information & Rates correct as at: 13/06/2013

What next?

Compare the best savings rates
4 & 5 year fixed rate bonds
Savings guides

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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