Compare 5 year fixed rate bonds
If you are looking for a way of maximising your savings on a long term basis, 5 year fixed rate bonds and other similar savings products may be well worth considering. However, in order to find the most competitive offer possible, research the market for comparisons on fixed rate bonds from as number of providers. This is easy with our comparison tables where we've put together our selection of the latest deals to help you find what you're looking for.
5 year fixed rate bonds offer customers with a high rate of interest that is intended to provide them with the best possible return on their savings. However unlike many other types of account, the money that is invested is often intended to be locked away for a lengthy period of time, providing the customer with little or no access to it, until the agreement ends. If you are looking for more information on 5 year fixed rate bonds, please consult the table below for some of the latest deals available. More long term, 5 year fixed rate bonds tend to provide customers with the highest possible return in terms of interest rates. As well as this, the fixed nature of these bonds may allow customers to accurately predict the return on their savings at the end of period.
Factors to Consider
Although these high, guaranteed interest rates may seem highly appealing in many ways, it is important to remember that that more long term fixed rate bonds are serious financial commitments. The following are some examples of common factors that should be considered: Money that is invested into these accounts may not be accessed for the duration of the agreement in many circumstances There are no guarantees that attractive interest rates will remain competitive in years to come The amount invested cannot usually be topped up or increased at any point during the course of the agreement
What are 5 year fixed rate bonds?
5 year fixed rate bonds are a form of savings account which offer you a guaranteed interest payment over the 5 year period. The longer the period of time generally the higher the interest payment paid.
Advantages of Fixed Rate bonds
- The interest rate offered is guaranteed for the 5 year term of the bond. This is unlike instant access savings accounts where the interest rate can go down or up at short notice.
- Different banks and building societies will have different views on medium to long term interest rates. If interest rates rise more slowly than expected a fixed rate bond may give you a better return than what you could expect from an instant access account.
- Some fixed rate bonds provide flexibility e.g. 1 withdrawal over the term.
- Fixed rate bonds range from 2 months to 5 years in duration so you can choose a term that suits your circumstances
- Many fixed rate bond providers offer online access so you can see how much interest you are earning.
Disadvantages of Fixed Rate Bonds
- The benefit of enjoying a higher rate of interest must be weighed against tying up your capital for a fixed term. If you need access to your capital before maturity this may not be possible and if it is there may be interest penalties.
- If interest rates rise over the 5 year term of the investment you may find the interest rate on your capital is no longer competitive compared to new offerings in the market.
- Many fixed rate bond providers require a high minimum deposit e.g. £5,000