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6 of the best long-term bonds

6 of the best long-term bonds

Category: Savings

Updated: 16/01/2018
First Published: 30/11/2017

Fixed rate bonds can be one of the best ways to secure a decent return from your money, but if you really want to secure those growth-generating rates, you'll need to think longer term. Long-term savings bonds generally offer terms of five or more years, and while this may seem like a long time to lock away your cash, the returns could be worth it!

These accounts are best suited to those who don't mind losing access to their money for the trade-off of a better rate, and could be ideal for savers who want their returns to be guaranteed. Long-term fixed rates have surged ahead recently, too, and although some may be wary of locking their money away given the recent base rate rise, there's no guarantee that providers will pass on the full 0.25% increase. Delaying could even mean you miss out on some of the best rates available, which makes it even more important to find the best deal.

Long-term savings bonds can also be perfect for those with big purchases planned in the next few years - a wedding or a house deposit, for example - but it's important to be aware of the restrictions. You'll rarely be able to withdraw funds before the end of the term, and with few bonds allowing further additions, you'll have to be comfortable with both the level of investment and the term chosen from the outset.

However, if you're confident you won't need the cash for a few 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

BLME

Bank of London and the Middle East (BLME)

Premier Deposit AccountGo to Site

2.55% AER

  • £25,000 minimum deposit
  • Rate fixed for seven years
  • Further additions, withdrawals and early access not permitted
  • Postal-operated
  • Interest paid on anniversary and must be paid away
  • Linked product: must have or open a BLME current account to hold funds pending investment
  • Sharia'a compliant account

Bank of London and the Middle East takes the top spot with this deal that pays an expected profit rate of 2.55%, making it the market leader in this sector of the market. It's only available to those with a minimum of £25,000 to invest, and they must be willing to lock away those funds for seven years as no early access will be permitted, but for those happy with the restrictions - including the linked account requirement - it could be worth it.

AER
Details

Secure Trust Bank

Secure Trust Bank

5 Year Fixed Rate Bond (22.12.22)

2.51% AER
  • £1,000 minimum deposit
  • Rate fixed to 22.12.22
  • Further additions permitted while issue remains open (min. £1,000)
  • Withdrawals and early access not allowed
  • Must be opened online but can then be managed by phone as well
  • Interest paid yearly

In second place is this account from Secure Trust Bank, a five-year deal that pays 2.51%, provided you've got a minimum of £1,000 to invest. It comes with an unusual level of flexibility in that further additions are permitted for a limited period, but early access still won't be possible, so savers must be comfortable with the full five-year term.


AER
Details

Paragon Bank

Paragon Bank

5 Year Fixed Rate Savings Account

2.50% AER

  • £1,000 minimum deposit
  • Rate fixed for five years
  • Further additions allowed for five days from initial funding
  • No withdrawals or early access
  • Access via nominated current account
  • Interest paid on anniversary
  • Internet-operated

Paragon Bank makes the top three with this five-year deal that pays 2.50% from a minimum of £1,000. It offers further additions for up to five days after initial funding, but you'll still need to make sure that you're happy with the final investment and the term of the bond, as early access won't be allowed.


AER
Details

PCF Bank

PCF Bank

7 Year Term Deposit Issue 3

2.50% AER

  • £1,000 minimum deposit
  • Rate fixed for seven years
  • Further additions permitted for 14 days from account opening
  • Withdrawals and early access not allowed
  • Can be opened online or by post and then managed by phone as well
  • Interest paid on anniversary and must be paid away

Next up is this account from PCF Bank, which boasts a rate of 2.50% for those with at least £1,000 to invest. You'll need to lock your money away for seven years for the privilege, with early access and withdrawals not possible, but it does allow you to add to your pot for up to two weeks from account opening.


AER
Details

BLME

Bank of London
and the Middle East (BLME)

Premier Deposit AccountGo to Site

2.50% AER

  • £25,000 minimum deposit
  • Rate fixed for five years
  • Further additions, withdrawals and early access not permitted
  • Postal-operated
  • Interest paid on anniversary and must be paid away
  • Linked product: must have or open a BLME current account to hold funds pending investment
  • Sharia'a compliant account

Bank of London and the Middle East has secured another place in the charts, this time with the five-year version of its Premier Deposit Account. It pays an expected profit rate of 2.50%, with all other features mirroring those of its seven-year counterpart.


AER
Details

Atom Bank

Atom Bank

5 Year Fixed Saver

2.45% AER

  • £50 minimum deposit
  • Rate fixed for five years
  • Further additions allowed for one week from account opening
  • No withdrawals or early access
  • Exclusively available through the Atom Bank smartphone app
  • Interest paid on anniversary

Just squeezing into the top six is this deal from Atom Bank, a five-year bond that pays 2.45%, and you only need a minimum of £50 to get started. It offers further additions for a week after the account has been opened, too, but just make sure that you're happy with the final investment, as early access won't be possible from this purely app-operated account.

Information & Rates correct as at: 30/11/2017

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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