A rate increase of 0.20% has helped push the 5 Year E-bond into the top ten of the long-term bond market.
This five-year bond pays a competitive fixed rate of 2.60% on its anniversary. A gross monthly rate of 2.57% is also available.
Investments range between £500 and £1 million and further additions can be made whilst the issue is open.
Early access to funds is not allowed so savers must be willing to lock their money away for the duration of the five-year term.
The account is available to investors aged 16 and over and can be operated online only.
This new look bond should appeal to savers who are committed to investing over a long period of time. The option to receive interest on a monthly basis should also appeal to savers looking to supplement their income with their funds. Four out of five Moneyfacts Stars have been awarded.
4 & 5 year fixed rate bonds What is a savings bond?
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