Short term fixed rate bonds
are a great option for those who wish to lock funds away for a small period. With interest rates likely to rise in the near future, it may be worth looking at accounts fixed for less than a year, as there are a host of deals to choose from. Here are the current top six month bonds.
Norwich & Peterborough Building Society – 6 Month E-Bond
This online only account pays a rate of 3.03pc on maturity. Savers can invest between £1,000 and £1m and further additions are not allowed. Early access is also not permitted. Must be new money to the institution. Savers must be aged 16 and over to operate this account, although accounts can be opened for younger savers on a trust basis.
Bank of Cyprus UK – Bank of Cyprus UK Bond 79
This bond pays 2.50pc on maturity. Investments range between £1 and £10m. Further additions and early access are not allowed. Interest is paid in gross on balances over £50,000. The account is available to savers of all ages and can be operated in branch, by post, telephone or online.
Principality Building Society – Fixed Rate Bond 164
This account pays a rate of 2.29pc on maturity. Savers can invest between £500 and £1m and further additions can be made while the issue is open. Funds cannot be accessed early. The account can be operated in branch and by post by savers of all ages.
Find the best savings accounts for you - Compare short term bonds