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Product focus: Long term bonds

Product focus: Long term bonds

Category: Savings

Updated: 14/05/2010
First Published: 14/05/2010

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 It is now over 6 months old so the content may be out of date.

Savers looking for an account with a guaranteed income may be swayed by the higher paying accounts such as four and five year bonds.

Whilst there is no denying that these accounts can offer a great rate of return, it is worth bearing in mind that the rate will remain fixed even when interest rates increase, as predicted in the near future.

Here is a selection of the current best five year fixed rate bonds.

ICICI Bank UK – HiSAVE Fixed Rate Account

This account pays 5.00% on its anniversary. Savers must invest a minimum of £1,000, although there is no maximum deposit limit. A monthly interest option is available at 4.89%. Early access and further additions are not allowed. A HiSAVE savings account will be opened automatically for administration of maturity proceeds. The account can be operated online only by savers aged 18 and over.

Aldermore – 5 Year Fixed Rate Account

Aldermore's new five year bond pays 4.70% on its anniversary. A monthly interest option is also available at a lower rate of 4.60%. Investments range between £1,000 and £1m. Further additions and early access are not allowed. The account is available to savers aged 18 and over and can be operated by post, telephone and online.

Barnsley Building Society – Fixed Rate Bond

This account pays an annual rate of 4.70%. A monthly interest option is available at 4.60%. Savers can invest between £100 and £2m and further additions can be made whilst the issue remains open. No early access is allowed. No interest is paid until 31st May 2011. On maturity the deal transfers to a 2 Year Rollover Bond. Savers aged 16 and over can operate this account by telephone only.

Find the best savings account for you - Compare best selling savings 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 Any products featured may be withdrawn by their provider or changed at any time.