4 & 5 Year Fixed Rate Bonds

  - Compare the long term fixed rate bonds as chosen by our experts.
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10 Year No Access Income Bond (Issue 2)
4.07%
30.09.24 £10000
  1. No
  2. Yes
  3. Yes
  4. No
Details...  


7 Year Fixed Rate Bond 1st Issue
3.50%
7 Year Bond £1000
  1. Yes
  2. No
  3. No
  4. No
Details...  

High Yield
3.25%
5 Year Bond £1000
  1. Yes
  2. No
  3. No
  4. No
Details...
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5 Year Fixed Rate Bond Issue 15
3.20%
5 Year Bond £5000
  1. Yes
  2. No
  3. Yes
  4. No
Details...  

5 Year Fixed Rate Account
3.10%
5 Year Bond £1000
  1. Yes
  2. No
  3. Yes
  4. Yes
Details...
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5 Year Fixed Rate Bond 8th Issue
3.08%
5 Year Bond £1000
  1. Yes
  2. No
  3. No
  4. No
Details...  


Limited Issue Five Year Fixed Rate E-Bond Issue 2
3.00%
5 Year Bond £500
  1. Yes
  2. No
  3. No
  4. No
Details...  


Fixed Rate Saver
3.00%
5 Year Bond £2000
  1. Yes
  2. No
  3. No
  4. Yes
Details...  


Five Year Fixed Rate Bond - Issue 1
3.00%
5 Year Bond £2500
  1. Yes
  2. Yes
  3. Yes
  4. No
Details...  

Sharia'a compliant Premier Deposit Account
3.00%
5 Year Bond £25000
  1. Yes
  2. No
  3. No
  4. No
Details...
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High Yield
2.91%
4 Year Bond £1000
  1. Yes
  2. No
  3. No
  4. No
Details...
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4 Year Fixed Rate Account
2.90%
4 Year Bond £1000
  1. Yes
  2. No
  3. Yes
  4. Yes
Details...
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Sharia'a compliant Premier Deposit Account
2.75%
4 Year Bond £25000
  1. Yes
  2. No
  3. No
  4. No
Details...
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Last Updated: Tuesday 29 July 2014 19:28

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.

Disclaimer:
All rates subject to change without notice. Please check all rates and terms before investing or borrowing.
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4 & 5 year fixed rate bonds explained

  • Longer term bonds tend to offer the best savings rates
  • Be sure you can commit your savings for the full term
  • Most bonds will allow early access, but expect to forfeit a large amount of interest
  • Think about what interest rates might do over the term of the bond before committing your money

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:

  • A flat interest penalty (loss of 360 days’ interest for instance)
  • A tapering interest penalty which gets smaller the closer your withdrawal is to the end of the term (loss of 360 days’ interest if you make a withdrawal in the first year, loss of 180 days’ interest if you make a withdrawal in the second, etc.)

What do you think will happen to interest rates?

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.

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