Where to Find the Best Fixed Bond Savings Accounts

Many instant access accounts yield as little as 0.1%. If this applies to your account, your personal savings won't even keep pace with the rate of inflation. If you're looking to enjoy a better return, fixed bond savings accounts are the preferred option. In return for locking away your savings for a 1 to 5-year period, your bank will pay you a better interest rate. However, you should never tie-up your money if you're likely to need it for an emergency bill or you plan to buy a house in the near future. It's essential that you think ahead.

Post Office 1 Year Online Fixed Bond, Issue 5

If you're prepared to lock away your funds for just 1 year, you'll enjoy a healthy return of 3.4% AER. You won't be able to access your money or add to it, but you will be able to decide whether you want to receive your interest annually or monthly. This facility is useful for people who live off their personal savings. The minimum investment is £500.

Whiteaway Laidlaw Bank 3-Year Fixed Rate Deposit Bond

If you're prepared to put away your money for 3 years, you'll receive 4.26% AER (3.4% net) on your savings. You'll need to invest a minimum of £5000, and your money cannot be withdrawn - in part or full - until the bond matures.

Birmingham Midshires 5-Year Fixed Rate Bond

If you lock up your money for 5 years, you'll enjoy a return of 4.5% AER. You can invest between £1 and £10 million, but you cannot withdraw your money until the end of year 5.

Best Fixed Bond Savings Accounts

The general rule is, the longer you tie up your money for, the better return that you'll enjoy on your savings. The Bank of England may have set interest rates at just 0.5%, but you can be sure that they won't be this figure in a few years time. This means that financial institutions are prepared to pay you more interest. Never sign-up the first savings account deal that you're offered.

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