Top 5 long-term fixed rate bonds - Savings - News - Moneyfacts

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Top 5 long-term fixed rate bonds

Top 5 long-term fixed rate bonds

Category: Savings

Updated: 18/07/2013
First Published: 18/07/2013

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 It is now over 6 months old so the content may be out of date.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 savings bonds with terms of five years and over:

Skipton Building Society
Skipton
Building Society
Limited Edition Fixed Rate Branch Bond

3.50% AER/Gross
  • Monthly interest paid at 3.45% gross
  • Investments between £500 and £10,000
  • Further additions allowed whilst issue is open
  • Early access not permitted
  • Account can be operated in branch only

Penny saysPenny says…
"Skipton Building Society has taken the long-term bond market by storm with the launch of this market-leading seven-year account for savers with investments of £500 and over.

"Paying competitive rates of return both annually and on a monthly basis, this branch-based bond should attract a fair amount of interest, although savers must be willing to leave their money untouched for the duration of the term."

FirstSave
FirstSave

5 Year Fixed Rate Bond 2nd Issue

2.90% AER/Gross
  • Monthly interest paid at 2.86% gross
  • Investments between £1,000 and £2 million (minimum for monthly interest is £5,000)
  • Further additions and early access not allowed
  • Account can be operated online only

Penny saysPenny says…
"Sitting in second place in the long-term bond market is this deal from FirstSave paying highly competitive annual and monthly rates of return.

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

Shawbrook Bank
Shawbrook Bank
5 Year Fixed Rate Bond Issue 7

2.90% AER/Gross
  • Minimum investment between £5,000 and £2 million
  • Further additions allowed whilst issue is open
  • Early access not permitted
  • Account can be operated by post or telephone

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

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

Secure Trust Bank
Secure Trust Bank
Fixed Rate Bond 5 Year Term (Series 5)

2.76% AER/Gross
  • Investments between £1,000 and £1 million
  • Further additions and early access not permitted
  • Account can be operated by post or telephone

Penny saysPenny says…
"Sitting in fourth place is this five-year bond available to savers with £1,000.

"As further additions can not be made whilst the issue is open, savers would be wise to invest as much as possible initially."

Virgin Money
Virgin Money
Fixed Rate E-Bond Issue 46

2.75% AER/Gross
  • Monthly interest paid at 2.72% gross
  • Investments between £1 and £1 million
  • Further additions allowed whilst issue is open
  • Early access not permitted
  • Account can be operated in branch or by post

Penny saysPenny says…
"This bond squeezes into the top five of the market with an annual rate of 2.75% paid on 20.7.2018.

"Savers must be prepared to tie their money up for the duration of the five-year term as early access to funds is prohibited."

Information & Rates correct as at: 17/07/2013

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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