Savings accounts with fixed rates can offer savers very competitive returns for locking their money away for a set period of time.
If you choose to invest in a fixed-rate bond, it is always wise to bear in mind these two factors:
1: Remember that many fixed-rate accounts will not allow you to make withdrawals during the term and you may be penalised for breaching this condition.
2: Keep a note of when your bond is due to mature. Providers may automatically re-invest your money into a lesser paying bond or variable rate deal after maturity meaning your return could drop considerably.
Staying on top of your maturity date will leave you with plenty of time to search the market and transfer your money into another competitive paying account.
Shawbrook Bank 1 Year Fixed Rate Bond Issue 9
Penny says… "Sitting at the top of the one-year fixed rate bond market this account is highly competitive to savers with investments of £5,000 and over.
"Additional deposits can be made to the account during the term, although as is the case with most fixed-rate products, funds must remain untouched."
Islamic Bank of Britain Sharia'a Compliant Fixed Term Deposit
Penny says… "This Sharia'a compliant bond offers an attractive quarterly indicative profit rate to investors of all faiths.
"Early withdrawals and further additions are not allowed, so savers must be prepared to lock away as much money as possible for the duration of the twenty-four month term."
Vanquis Bank High Yield
Penny says… "Heading up the medium-term bond market is this three-year deal from Vanquis Bank.
"As well as paying a market-leading rate on its anniversary, this bond should also appeal to savers looking to supplement their income with a competitive monthly return."
Sainsbury's Bank Fixed Rate Saver
Penny says… "This four-year bond from Sainsbury's Bank pays a very competitive rate for savers with investments of £5,000 and over.
"Savers must be prepared to lock their funds away for the four-year period as early access is prohibited."
Skipton Building Society 5 Year E-Bond
Penny says… "Savers looking to tie up their money over a five-year period should find this online deal from Skipton Building Society appealing.
"Those looking to receive interest on a monthly basis must be aware that a lower gross rate of 2.96% is paid, despite the AER matching that of the anniversary rate."
Information & Rates correct as at: 26/04/2013
Compare the best savings rates 1 year fixed rate bonds 2 year fixed rate bonds 3 year fixed rate bonds 4 & 5 year fixed rate bonds
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.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.