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Braadbaart

Lieke Braadbaart

Online Writer
Published: 15/11/2018

Long-term fixed rate bonds remain the surest way to beat inflation on a large savings pot without risking your hard-earned funds on the stock market. Thanks to a welcome lack of change in the Consumer Prices Index in October, you currently 'only' have to say goodbye to your savings for at least four years to get an inflation-beating return.

Ongoing economic and political uncertainty could make this a great time to seek some fixed bond security. Such a bond could also be perfect for those with big purchases planned – a wedding or a house deposit, for example. Just remember that you'll rarely be able to withdraw funds before the end of the term, and few bonds allow further additions either, so you'll have to be comfortable with both the level of investment and the term chosen from the outset.

If you're confident you won't need the cash for several years and are ready to secure a decent return, it's time to get searching. To help you on your way, here are the current top six long-term bonds that could help you get more from your money.

AER Details

Secure Trust Bank
7 Year Fixed Rate Bond
2.75%
  • £1,000 minimum deposit
  • Rate fixed until 09.12.2025
  • Additions of at least £1,000 permitted while the issue remains open
  • No withdrawals or early access allowed
  • Must be opened online, but can then also be operated over the phone
  • Interest paid yearly

Secure Trust Bank takes the top spot with this seven-year deal that pays the joint market-leading rate of 2.75% on investments of at least £1,000 until 9 December 2025. As is common in the sector, early access is not allowed, but additions are welcome for some time.

AER Details

Bank of London and The Middle East
Premier Deposit Account

2.75%
(expected profit rate)
  • £10,000 minimum deposit
  • Rate fixed for seven years
  • No additions, withdrawals or early access allowed
  • Linked product: must have or open a BLME current account first
  • Must be opened online, but can then also be operated over the phone and by post
  • Interest paid on its anniversary and must be paid away
  • Sharia'a compliant account

In second place sits Bank of London and The Middle East (BLME), which also offers a(n expected profit) rate of 2.75% over seven years, but this time requiring at least £10,000 to be invested. While there's no option to access funds early and interested savers will have to open a linked BLME account first, this could be a great alternative for those who don't want to wait for a set date to regain access to their money.

AER Details

Secure Trust Bank
6 Year Fixed Rate Bond
2.73%
  • £1,000 minimum deposit
  • Rate fixed until 09.12.2024
  • Additions of at least £1,000 allowed while the issue remains open
  • No withdrawals or early access
  • Must be opened online, but can then be managed over the phone as well
  • Interest paid yearly

Secure Trust Bank completes the top three with the market-leading six-year rate of 2.73%, which will be fixed until 9 December 2024. It can be opened with £1,000 and allows savers to make additions of the same amount while the deal remains available, but as usual, early access is not permitted.

AER Details

Secure Trust Bank
5 Year Fixed Rate Bond
2.71%
  • £1,000 minimum deposit
  • Rate fixed until 08.12.2023
  • Additions of at least £1,000 welcome while the issue remains open
  • No withdrawals or early access allowed
  • Must be opened online but can then be managed over the phone as well
  • Interest paid yearly

Secure Trust Bank does it again with a third account making it into this chart. Once more, its five-year fixed rate bond offers the market-leading 2.71% paid until 8 December 2023 to those who have at least £1,000 to set aside. With its other features matching the six- and seven-year offers, this could be a great choice for savers who don't want to fix their savings for more than half a decade.

AER Details

Bank of London and The Middle East
Premier Deposit Account

2.70%
(expected profit rate)
  • £10,000 minimum deposit
  • Rate fixed for five years
  • No additions, withdrawals or early access allowed
  • Linked product: must have or open a BLME current account first
  • Can only be opened online, but then also operated over the phone and by post
  • Interest paid on its anniversary and must be paid away
  • Sharia'a compliant account

Also managing to get more than one account in the top five is BLME, with its five-year bond paying a near market-leading expected profit rate of 2.70% on a minimum investment of £10,000. Additions and withdrawals may not be allowed, but the inflation-beating return could well appeal to more than just ethical savers.

AER Details

Gatehouse Bank
Fixed Term Deposit
2.68%
(expected profit rate)
  • £1,000 minimum deposit
  • Rate fixed for five years
  • No additions, withdrawals or early access allowed
  • Internet-operated
  • Interest paid on its anniversary and must be paid away
  • Sharia'a compliant

Completing the top six is Gatehouse Bank, with its online-only five-year bond paying an expected profit rate of 2.68% on a minimum of £1,000. This Sharia'a compliant account does not allow any access before the five years are up, but as interest is paid away interested savers would see a nice bonus every year.

Information and rates correct as at: 15.11.2018

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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