Many savers prefer to invest their money in fixed rate bonds as they offer a guaranteed return.
Research compiled by Moneyfacts.co.uk, however, has shown that at present, savers who take out a fixed rate bond
will receive up to 23.3% less interest compared to nine months ago.
Providers are focused on attracting new mortgage business by reducing their mortgage rates
and as a result savings rates
are also being cut to balance their books.
Here is a selection of the current best six month bonds for those who wish to lock in their money for a short period.
Norwich & Peterborough Building Society – Fixed Rate Bond
This reasonably new account pays a rate of 2.04% on maturity. A monthly interest option is also available at 2.03%. Savers can invest between £1,000 and £1 million. Further additions and early access are not allowed. The account is available to savers of all ages and can be operated in branch, by post or online.
Principality Building Society – 6 Month Fixed Rate Bond 170
This account from Principality Building Society pays 2.00% on maturity. There is also a monthly interest option which pays 1.99%. Investments range between £500 and £1 million 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 in branch or by post.
United Trust Bank – 6 Month Fixed Deposit
The 6 Month Fixed Deposit account pays 1.55% on maturity. Savers can invest between £500 and £500,000. Further additions and early access are not allowed. The account is available to savers aged 16 and over and can be operated by post only.
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