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Product focus: Fixed rate savings accounts

Product focus: Fixed rate savings accounts

Category: Savings

Updated: 17/11/2010
First Published: 17/11/2010

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 It is now over 6 months old so the content may be out of date.

In uncertain economic times, many savers prefer to invest their money in an account that offers a fixed rate of interest.

It has been evident over the past couple of months that the rates on three, four and five year fixed rate bonds have been falling, whilst one year bond rates have remained fairly static.

This may be an indication that banks are starting to focus more on one year fixed bonds, which means that this could be an area where better rates could be found. Here is a selection of some of the best one year fixed savings rates available at present:

FirstSave – 1 Year Fixed Rate Bond

This bond pays a rate of 3.00% on maturity. A monthly interest rate is also available at 2.96%. Savers can invest between £5,000 and £2m. No early access or additions are permitted. This is available to savers aged 18 years and over and can be operated only online.

Northern Rock – Fixed Rate Bond Issue 417

A rate of 3.00% will be paid on this bond yearly. A monthly option is also available at 2.70%. Investments range from £1 to £2m. No early access is permitted and any additions must be made while the issue remains open. This is available to all savers and can be operated only by post.

Post Office – Growth Bond Issue 13A

A rate of 2.90% is paid on maturity. Savers can invest between £500 and £1m. Early access is on closure of account only and will be subject to a breakage fee. No additions are permitted. This bond is available to all ages and can be operated by post, over the telephone and online.

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 Any products featured may be withdrawn by their provider or changed at any time.