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For savers looking for a medium term home for their money, a 2 year fixed rate bond can offer a reasonable interest rate, without tying up your money for too long.
When you take out a fixed rate bond, you should also have considered what you think will happen to interest rates:
Many 2 year fixed rate bonds will not allow early access to your savings before the end of the term.
It’s important that you’re satisfied that you won’t need to make a withdrawal for the duration of the bond. Where access is allowed, it will normally come with a big interest penalty.
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