Top fixed rate bonds

Category: Savings
Author: Leanne Macardle
Date: 31/08/2017

Fixed rate bonds have seen a definite improvement in recent weeks, with average rates rising amid growing competition and a higher number of products available, too. So why not make the most of it? Take advantage of the rate rises with our pick of the top fixed rate bonds, covering all available terms to ensure there's something to suit your requirements.

One-year bond

Top of the one-year bond market is this deal from BLME, a 12-month bond that pays an expected profit rate of 2.00% to those with at least £25,000 to invest. It's a hefty amount to lock away, but the returns could be worth it, particularly as you'll only need to part with your cash for a year.

18-month bond

If you're willing to part with your cash for a little longer, you can't go wrong with this account from Al Rayan Bank. Paying a market-leading expected profit rate of 2.06%, it asks for a minimum investment of £1,000, and can be managed by several channels for added convenience.

Two-year bond

Al Rayan Bank is a force to be reckoned with in the short-term bond market, with its two-year deal also the market-leader of its sector. Again, it requires you to lock your investment away for the full term, but given that it offers a rate that's far above the next competitor (Atom Bank's app-operated deal clocks in at 2.10%), it's certainly worth considering.

Three-year bond

What can we say? Al Rayan Bank has done it again with a three-year deal boasting a market-leading expected profit rate of 2.32% for those with a pot of at least £1,000. This puts it head and shoulders above the competition, which includes the much-hyped Investment Guaranteed Growth Bond from NS&I that pays a paltry 2.20% by comparison.

Four-year bond

Another provider to lead the way in the fixed rate bond market, this four-year deal from BLME could be just the thing for those seeking a medium-term home for their funds, with a rate of 2.40% payable on deposits of at least £25,000. Just make sure you're happy with your investment and the term, as neither further additions nor early access will be possible before the full four years is up.

Five-year bond

Storming ahead in the five-year market is this deal from Atom Bank, paying a joint market-leading 2.50% from a minimum deposit of just £50. Unusually for this sector of the market, it allows further additions for a limited period, but no withdrawals will be accepted. It's also worth noting that it's only suitable for those comfortable with mobile banking, with this deal being purely app-operated.

Seven-year bond

The top-paying fixed rate bond currently available is this seven-year deal from relative newcomer PCF Bank, paying a market-leading 2.60% to those with at least £1,000 to invest. It's the only deal available that currently won't see your savings eroded by inflation, but you'll need to be willing to lock your money away for the full seven-year term for the privilege, with no earlier access permitted.

Information & rates correct as at: 31/08/2017