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Product focus: Short term bonds

Product focus: Short term bonds

Category: Savings

Updated: 23/06/2010
First Published: 23/06/2010

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 It is now over 6 months old so the content may be out of date.

The short term fixed market has seen increased competition in recent weeks, with a number of providers launching best buy deals. If savers are prepared to commit funds for a year then they have a wide choice of bonds available.

Aldermore – 1 Year Fixed Rate Account

At 3.05pc, the one year bond from Aldermore is paying the highest rate on the market. For savers after a regular income the bond has a monthly interest option. Savers can invest between £1,000 and £1m into the bond. Once opened, further additions and earlier access is not permitted. The account is operated online, by post or telephone.

Northern Rock – Fixed Rate Bond Issue 394

Following the removal of Northern Rocks 100pc protection of savers money, the provider has increased its competitiveness in the savings market in a bid to maintain savers deposits. Paying 3.00pc, its one year bond sits just below the market leader. Savers can invest between £1 and £2m, with further additions permitted whilst the bond remains open. The bond matures on 1st July 2011, and access to funds is not available before this date.

Post Office – Growth Bond Issue 12

At the recent Moneyfacts awards the Post Office took the prize as the most competitive fixed rate bond provider. Its one year bond paying 3.00pc is one of a number of best buy deals being offered by the provider. Savers can invest between £500 and £1m into the bond. Once opened further additions and access to funds is not available during the term.

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 Any products featured may be withdrawn by their provider or changed at any time.