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6 of the best long-term bonds

6 of the best long-term bonds

Category: Savings
11/07/2018

Long-term fixed rate bonds remain one of the best ways to beat inflation on a large savings pot. While you still have to say goodbye to your savings pot for at least five years to get an inflation-beating return, the current economic and political uncertainty might make it a great time to seek some fixed bond security.

Such a bond could also be perfect for those with big purchases planned in the next few years – 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 a number of 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
Secure Trust Bank
7 Year Fixed Rate Bond
(15.7.25)
Go to Site
2.76%
  • £1,000 minimum deposit
  • Rate fixed until 15.07.2025
  • 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 be managed over the phone as well
  • Interest paid yearly

Secure Trust Bank takes the top spot with this deal that pays the market-leading return of 2.76% over seven years. It can be opened with £1,000 and allows additions until the issue gets replaced, offering some flexibility. However, interested savers must be willing to lock away their funds until 15 July 2025, as early access will not be permitted.

AER Details
Secure Trust Bank
Secure Trust Bank
6 Year Fixed Rate Bond
(15.7.24)
Go to Site
2.71%
  • £1,000 minimum deposit
  • Rate fixed until 15.07.2024
  • 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 be managed by phone as well
  • Interest paid yearly

In second place is another account from Secure Trust Bank, this time offering the market-leading rate over six years of 2.71% for those who have a minimum of £1,000 to invest. The other features mirror its seven-year counterpart, making this an appealing alternative for those who don't want to lock their funds away for more than six years.

AER Details
BLME
Bank of London and the Middle East
Premier Deposit Account
Go to Site
2.70%
(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
  • Internet-operated
  • Interest paid on its anniversary and must be paid away
  • Sharia'a compliant account

Bank of London and the Middle East (BLME) completes the top three with a seven-year deal that pays an expected profit rate of 2.70% on an investment of at least £10,000. As usual, early access is not allowed, and you will need to open a linked current account, but the return and security that come with this deal could very well make it worth your while.

AER Details
Gatehouse Bank
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 account

Next up is Gatehouse Bank with the leading five-year bond, which pays an expected profit rate of 2.68% on a minimum of £1,000. No access whatsoever is allowed on this online-exclusive bond, which could nonetheless be a great choice for those looking to balance an inflation-beating return with a reasonable fixed term.

AER Details
Secure Trust Bank
Secure Trust Bank
5 Year Fixed Rate Bond
(14.7.23)
Go to Site
2.67%
  • £1,000 minimum deposit
  • Rate fixed until 14.07.2023
  • 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 be managed over the phone as well
  • Interest paid yearly

Secure Trust Bank does it again with a third bond making it into the list, this time the five-year version of its offering, which pays a near market-leading rate of 2.67% over its term. Savers will once again require at least £1,000, but they will be able to add funds to the account for some time, making this a competitive choice for those looking to set their funds aside for only five years.

AER Details
Masthaven Bank
Masthaven Bank
5 Year Fixed Term Bond
Go to Site
2.66%
  • £500 minimum deposit
  • Rate fixed for five years
  • Additions allowed for seven days from account opening through a nominated account
  • Withdrawals and earlier access not permitted
  • Internet-operated
  • Interest paid on its anniversary

Completing the top six is Masthaven Bank, whose five-year bond pays 2.66% on as little as £500, with its low investment limit setting it apart from the other deals in this list. It allows additions for a little while, but as usual access is not permitted before the term is up.

Information and rates correct as at: 11.07.2018

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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