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Five year bond rates sail to six month high

Five year bond rates sail to six month high

Category: Savings

Updated: 11/01/2012
First Published: 11/01/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Returns paid on long-term savings accounts have hit their highest level for six months, research by has found.

Figures show that the average rate for five year fixed rate bonds has hit its highest level since July 2011.

Today, savers can get an average rate of 4.14% on a five year fixed rate bond, although they can get even higher rates if they're prepared to look around.

The pleasing news for investors has come about as rates on long-term accounts have been steadily increasing since the back end of 2011.

It is the highest average rate for five year savings accounts since July 2011, when the average rate stood at 4.20%.

But while the rate stands at a half-year high and is improved on the average rate of 4.06% a year ago, it still lags behind the average of 4.56% that was being offered to long-term savers in January 2010.

Many of the best deals currently available are being offered by smaller or lesser-known providers.

They include:

  • AA, 5 Year Fixed Rate Saving – 4.60%
  • State Bank of India , Hi Return Fixed Deposit – 4.50%
  • SAGA, 5 Year Fixed Rate Savings – 4.50%

"Savers who want to make the most of their money would be wise to research the market thoroughly to achieve the best bond for them, rather than turn immediately to the high street," commented Louise Holmes, spokesperson for

"The golden rule to bear in mind when looking at long-term bonds is whether they allow early access to funds.

"The majority of fixed rate bonds carry penalties such as loss of interest for those who withdraw funds early, so savers must be committed to locking their money away for the duration of the term."

Find the best savings accounts for you - Compare long term fixed rate accounts

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 Any products featured may be withdrawn by their provider or changed at any time.