Product focus: Short term fixed rate - Savings - News |

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Product focus: Short term fixed rate

Product focus: Short term fixed rate

Category: Savings

Updated: 27/05/2010
First Published: 26/05/2010

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 It is now over 6 months old so the content may be out of date.

The OECD's (Organisation for Economic Co-operation and Development) has today warned that the Bank of England should raise interest rates by the end of 2011, to head off higher inflation. The international think-tank's comments will certainly strike a chord with many savers who have struggled with low interest rates and returns on their savings accounts. Despite this warning, it remains unclear as to when interest rates will rise. As a result, a large number of savers are playing safe by investing in short term fixed rate bonds. Here is a selection of the current best short term fixed rate bonds available.

Scottish Building Society – Treble 16 Bond

The Treble 16 Bond pays 3.00pc on 23 August 2011. Savers can invest between £1,000 and £500,000, although no further additions or early access is allowed. The rate reverts to that on the Bond Maturity Account at end of the fixed term. This savings account is available to savers of all ages and can be operated in branch and by post.

Post Office – Growth Bond Issue 12

This account from the Post Office pays 3.00pc on maturity. Investments range between £500 and £1m, while early access or further additions are not permitted. The account can be operated by savers of all ages by post, telephone or online.

Northern Rock – Fixed Rate Bond Issue 393

This account pays a rate of 2.90pc on 1 June 2011. A monthly interest option is also available at 2.60pc. Savers can invest between £1 and £2m and further additions can be made whilst the issue is open. Early access is not allowed. The account is available to savers of all ages and can be operated by post only.

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 Any products featured may be withdrawn by their provider or changed at any time.