Moneyfacts.co.uk Best Buys show the best products chosen by our independent experts. Where we have been able to we have also provided a link for you to open an account today. Products shown with a yellow background are sponsored products.
For savers who don’t need to access their savings for a longer period of time, 4 and 5 year fixed rate bonds offer the very best savings rates available.
Most 4 and 5 year fixed rate bonds will let you access your money before the end of the term (although by no means do all allow this). Where early access is permitted there will normally be a hefty interest penalty. These penalties vary between providers and can either be:
When taking out a longer term fixed rate bond, it’s important to think about what will happen to interest rates over the next few years.
If interest rates go down, opting for a 4 or 5 year fixed rate bond will end up being a financially shrewd move, as other savers will have to suffer lower rates.
Conversely, if interest rates go up during the term of your bond, better rates could be on offer. It could transpire that your bond pays an uncompetitive rate of interest in comparison to the best savings rates available.
While thinking about what rates will do is important, so is the certainty you get with a bond. One of the big advantages of a fixed rate bond is that you are getting a definite rate of interest, over a definite term. If you think rates won’t rise over the term of your bond, or you simply want a stable rate of interest for the next 4 to 5 years, then a longer term bond can be a great option.
A good hedge, if you are worried about interest rates rising over the longer term, is to opt for a medium term 2 or 3 year fixed rate bond. You aren’t committed for as long, but you do get the benefit of a better rate of interest than will be available on a variable rate easy access or notice account.
Savings home Search all savings accounts
Stay in the know with all the latest information, of-the-moment consumer trends, best-in-class products & providers and helpful tools from Moneyfacts.
We know it can be difficult to get into the habit of saving. Other spending can easily get in the wa... More
There’s no end in sight to the downward spiral of savings rates – if anything, it only seems to be r... More
Official figures have revealed that the UK’s rate of inflation rose to a 20-month high in July, with... More
Easy-access savings accounts are as simple as they sound – they allow you to access your money whene... More
Savers have had it rough over the years and with endless cuts decimating the market, some potential ... More
Islamic savings accounts offer a Sharia’a-compliant way of saving for Muslims living in the UK, as w... More
Find out where your bank or building society is licenced, and what deposit protection guarantees you... More
With some forecasters predicting interest rate cuts by November 2012, we look at the pros and cons o... More
Charter Savings Bank has launched new one-year and 18-month fixed rate savings bonds with highly com... More
Ikano Bank has amended rates across its range of fixed savings bonds. Nonetheless, the two, three an... More
Raphaels Bank has reduced the rate paid on its 60-month fixed bond by 0.15%; however, this hasn’t de... More
Bank of London and The Middle East has reduced the rate paid on its five-year fixed bond by 0.20%. H... More
Close Brothers Savings has launched a new three-year bond onto the market, snatching it a coveted pl... More
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.