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6 of the best two-year bonds

6 of the best two-year bonds

Category: Savings
15/02/2018

Fixed rate bonds are still the best way to secure a guaranteed return on your savings, but in light of the ongoing economic uncertainty, you may be reluctant to tie up your money for too long. A two-year deal could be the perfect compromise.

This kind of account can be ideal if you're saving up for something specific (such as a wedding, a new car or a once in a lifetime holiday) and want to be absolutely certain that you won't be tempted to spend the money in the meantime.

They're also perfect if you think rates could rise in the near-future and don't want to keep your money out of arm's reach for years on end. After all, there's no telling what will happen to savings rates or if the Bank of England will be willing to increase base rate again anytime soon. So, if you want to secure growth-generating returns without too much commitment, a short-term bond could be just the thing.

These accounts offer the best of both worlds as far as savings are concerned: a decent rate and the peace of mind in knowing that you'll be able to access your cash in two years' time. Just bear in mind that you'll rarely be able to make further additions after your initial deposit and earlier access usually won't be possible, so you'll need to be comfortable with your investment and the two-year term.

If this sounds like the kind of short-term bond for you, read on for the best two-year deals currently available that can offer a great rate with minimal commitment.

AER
Details

Atom Bank

Atom Bank

2 Year Fixed Saver

2.10% AER
  • £50 minimum deposit
  • Rate fixed for two years
  • Further additions allowed for one week from account opening
  • Withdrawals and early access not permitted
  • Can only be opened and operated through Atom Bank's own smartphone app
  • Interest paid on anniversary

In first place sits Atom Bank, with its two-year deal paying the joint market-leading rate of 2.10%. It can be opened with as little as £50, which has given it the edge over its competition, although it should be noted that this account can only be managed via smartphone. As usual, no early access is allowed, but additions are permitted for a short time.


AER
Details

Bank of London and the Middle Ease

Bank of London and the Middle East (BLME)

Premier Deposit AccountGo to Site

2.10% AER

  • £25,000 minimum deposit
  • Rate fixed for two years
  • No additions, withdrawals or early access allowed
  • Account must be opened online and then operated by post
  • Linked account: must have or open a BLME current account
  • Interest paid on anniversary and must be paid away
  • Sharia'a compliant account

BLME takes second place with this bond that pays a joint market-leading anticipated profit rate of 2.10%, from a minimum investment of £25,000. No access is allowed and customers must have a linked BLME current account before they can invest, but it could be a top choice for those with a large sum of money they're looking to set aside for two years.


AER
Details

PCF Bank

PCF Bank

30 Month Term Deposit Issue 6

2.07% AER

  • £1,000 minimum deposit
  • Rate fixed for 30 months
  • Further additions allowed for 14 days from account opening
  • No withdrawals or early access
  • Can be opened online or by post, and then managed over the phone as well
  • Interest paid on anniversary and must be paid away

PCF Bank completes the top three with this deal that pays 2.07% from a minimum investment of £1,000, provided you're willing to set your funds aside for a slightly longer 30 months. As is common in the sector, it doesn't permit access prior to maturity, but it does allow you to add more funds for a limited time.


AER
Details

Secure Trust

Secure Trust Bank

2 Year Fixed Rate Bond (11.3.20)

2.06% AER

  • £1,000 minimum deposit
  • Rate fixed until 11.03.2020
  • Additions of at least £1,000 allowed while the issue remains open
  • No withdrawals or earlier access
  • Can only be opened online, but then operated by phone as well
  • Interest paid yearly

Next up is this two-year deal from Secure Trust Bank, which pays 2.06% on a minimum deposit of £1,000. Additions are allowed for a little while, but early access is not. With a set end date, this account could be ideal for a planner.


AER
Details

PCF Bank

PCF Bank

2 Year Term Deposit Issue 7

2.05% AER

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

PCF Bank secures another place in this chart, this time with the two-year version of its fixed bonds, which pays 2.05%. All other features mirror its 30-month deal mentioned above.


AER
Details

Union Bank of India

Union Bank of India (UK) Ltd

Term Deposit

2.05% AER

  • £1,000 minimum deposit
  • Rate fixed for two years
  • No additions, withdrawals or earlier access
  • Can be opened and operated in branch and by post (though internet banking is available to current account holders)
  • Interest paid yearly and must be paid away

Just squeezing into the top six is this deal from Union Bank of India (UK) Ltd, which also pays a rate of 2.05% from an initial investment of £1,000. As with the majority of the aforementioned accounts, there's no early access possible.

Information & Rates correct as at: 15.02.2018

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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