6 of the best two-year bonds

Category: Savings
21/06/2018

Fixed rate bonds remain the best way to secure a guaranteed return on your savings, yet 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 next few years and you don't want to keep your money out of arm's reach for too long. After all, there's no telling what will happen to savings rates and the Bank of England has today once again decided to keep base rate on hold. 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 around 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 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
OakNorth Fixed Term Deposit	2.16%	£1,000 minimum deposit Rate fixed for 30 months No additions, withdrawals or early access allowed Internet-operated account Interest paid on maturity and must be compounded (which occurs on an annual basis)

OakNorth sits proudly in first place with the market-leading rate of 2.16%, which requires a minimum investment of £1,000. While you'll have to say goodbye to your funds for slightly longer, as it requires a 30-month commitment, and you won't be able to even add money to the fund before maturity, the top rate could easily make it worth your while.

	AER	Details
Atom Bank 2 Year Fixed Saver	2.15%	£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 the anniversary of the account opening

In second place sits Atom Bank, with its two-year deal paying a rate of 2.15%. It can be opened with as little as £50 and even allows additions for a week, although it should be noted that this account can only be managed via smartphone. As usual, early access is not allowed.

	AER	Details
Investec Bank plc 2 Year Fixed Term Deposit	2.15%	£25,000 minimum deposit Rate fixed for two years No additions, withdrawals or early access Can only be opened online, but then managed over the phone as well Linked product: requires Investec Easy Access Account for transactional purposes Interest paid on anniversary and must be paid away

Investec Bank plc completes the top three with another deal that pays 2.15%, this time from a minimum of £25,000. As is common in the sector, it doesn't permit access prior to maturity. Also note that this account will require you to open an easy access account with the provider.

	AER	Details
Masthaven Bank 30 Month Flexible Term Saver	2.14%	£500 minimum deposit Rate fixed for 30 months Additions allowed for seven days after account opening via a nominated account No withdrawals or earlier access Internet-operated Interest paid on its anniversary

Next up is this 30-month deal from Masthaven Bank, which pays 2.14% on a minimum deposit of £500. Additions are allowed for a little while, but early access, as usual, is not.

	AER	Details
Gatehouse Bank Fixed Term Deposit	2.14% (expected profit rate)	£1,000 minimum deposit Rate fixed for two years Further additions, withdrawals and early access not permitted Internet-operated Interest paid on anniversary and must be paid away Sharia'a compliant account

Gatehouse Bank secures fifth place with a two-year deal that pays an expected profit rate of 2.14% on a minimum of £1,000. Access is not allowed before the two years are up, so interested savers would have to make sure they are happy with their initial deposit before committing.

	AER	Details
Secure Trust Bank 2 Year Fixed Rate Bond (15.7.20)	2.14%	£1,000 minimum deposit Rate fixed until 15.07.2020 Additions of at least £1,000 allowed while the issue remains open No withdrawals or earlier access Can only be opened online, but then also managed over the phone Interest paid yearly

Completing the top six is this deal from Secure Trust Bank, which also pays a rate of 2.14% from an initial investment of £1,000. It offers potentially somewhat more flexibility, as additions are allowed until the issue of the savings account closes to new customers, and it tells you the exact date that you will get access again, which could be great for planners.

Information and rates correct as at: 21.06.2018