Fixed rate bond race is on as deals become fully subscribed
16/11/2009
Rebecca Sargent
Savers looking for fixed rate bonds need to act fast as the average bond shelf-life fell to a new low last month, Moneyfacts.co.uk has claimed.
According to the financial information providers, the average shelf-life of a fixed rate bond was just 23 days last month, compared to March 2006 when the figure stood at 158 days.
Commenting, Michelle Slade, spokesperson for Moneyfacts.co.uk said: "The demand for fixed rate investments continues to increase as savers look to maximise returns.
"Such high demand means that bonds are being fully subscribed quickly, causing providers to pull many of the most competitive deals and replace them with new issues."
According to further research by Moneyfacts.co.uk, 34 per cent of all savings internet searches are for fixed rate bonds, and the average amount invested now stands at £40,076.
And, as the maximum available interest rates on fixed rate bonds have fallen from 6.70 per cent to 3.95 per cent over the last year, savers are advised: "If you want to secure the best deal, then act fast."
Click to compare leading fixde rate bonds »
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| Barclays Wealth Defined Returns Plan | 44% after 6 years | 6 years | |
| 6 year Capital Protected Structured Investment Plan offering a maximum return of 44%. |
| Investec FTSE 100 3 Year Deposit Plan | 19% after 3 years | 3 years | |
| This capital protected deposit plan offers a maximum return of 18% at maturity. |
| Investec FTSE 100 Geared Returns Plan | 62.5% | 5 years | |
| This 5 year structured investment plan offers a maximum return of 62.5% at maturity. |
| Barclays Wealth Defined Returns (Annual Kick-Out 90) Plan | 7.75% per year | Up to 6 years | |
| 6 year structured investment plan that offers an opportunity for attractive pre-defined returns at 7.75% a year. Potential to kick-out after 3 yearsif the FTSE is above 90% of its starting level. |
| Investec FTSE 100 Enhanced Kick-Out Plan | 9.25% per year | Up to 5 years | |
| 5 year structured investment plan offering a fixed return of 9.25% a year with the potential to kick-out after year one. |
| Barclays Wealth Defined Returns (Annual Kick-Out 100) Plan | 7.75% per year | Up to 6 years | |
| 7.75% a year for the investment term, if final index level is above initial index level at any of the 6 anniversaries of the structured investment plan. Opportunity kick-out after 2 years. |
| Barclays 3 Year UK Super Tracker | 30% after 3 years | 3 years | |
| This 3 year structured investment plan returns 2x any growth in the FTSE 100 index up to a maximum of 30%. |
| Barclays 5 Year UK Super Tracker | 64% after 5 years | 5 years | |
| This 5 year structured investment plan returns 4x any growth in the FTSE 100 index up to a maximum of 64%. |
| Investec FTSE 100 Kick-Out Deposit Plan | 6.75% per year | Up to 5 years | |
| Structured deposit plan with two options offering returns of up to 6.75% per year. Potential to kick out after 2 or 3 years depending on the option. |
| Morgan Stanley FTSE Kick Out Growth Plan | Up to 50% | 6 years | |
| This 6 year structured investment plan offers a maximum return of 50%. |
| Morgan Stanley FTSE Best Entry Growth Plan | 2.85 x FTSE 100 Growth | 6 years | |
| This 6 year structured investment plan offers a return of 2.85 times the FTSE 100 Growth. |
| Morgan Stanley FTSE Tracker Plus Plan | 1.2 x any positive growth in FTSE 100 | 6 years | |
| This 6 year structured investment plan offers a return of 1.2 times any positive growth in the FTSE 100, with 80% capital protection. |
| Morgan Stanley FTSE Protected Growth Plan | Up to 20% | 6 years | |
| This 6 year structured investment plan offers a maximum return of 20% with the option to kick out after 3 years. |
| Investec FTSE 100 5 Year Deposit Plan | 40% after 5 years | 5 years | |
| This 5 year capital protected deposit plan offers a maximum return of 40% at maturity. |
* Maximum Growth Yields are not guaranteed and subject to certain conditions
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General risk warnings
- The list of funds/investments provided above should not be seen in any way as being a recommendation. No advice has been given and you should be aware that any investment which takes place will be transacted on a “non-advised sale” basis.
- Full details of the investments will be provided in the documentation/brochure sent to you and it is up to you to ensure that you fully understand the nature of the investment before proceeding. If you are at all unsure of the suitability of the type of investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.
Collective investments
- Collective investments such as unit trusts are designed as medium to long term investments, for example at least five years.
- The value of your investment and the level of any income received from it can fall as well as rise and is not guaranteed and you may not get back the amount of your original investment.
- Any income yield quoted is correct at the time of going to press. Income yields vary and are only estimates. The actual dividend income that you receive will depend upon the income payable by the underlying assets of the fund and could change, either up or down, at any time. Dividend income from an ISA will, under current legislation, be free of UK income tax. Dividend income paid from a fund not held within an ISA will be subject to income tax, which may or may not be reclaimable depending upon your circumstances and the type of investment. In some cases, there may be additional income tax to pay.
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- Dividend income paid from a fund not held within an ISA will be subject to income tax, which may or may not be reclaimable depending upon your circumstances and the type of investment. In some cases, there may be additional income tax to pay.
Structured Products
- Structured Products are fixed term investments and are designed so that your capital remains invested for the full term of the plan. Although it may be possible to encash your investment before the end of the term, this could mean that an early encashment charge is applied and you may not get back the full amount of your capital.
- An investment termed as a “capital guaranteed structured product” is one where the return of your capital at maturity is not dependent upon the performance of an index or another financial instrument
- An investment termed as a “capital at risk structured product” is one where the return of your capital at maturity is dependent upon the performance of an index or another financial instrument.
Specific ISA warnings
- The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.
- Dividend income from a stocks and shares ISA will, under current legislation, be free of further liability to UK income tax whether this is paid out or automatically reinvested.
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