Latest fixed rate bond rates

Latest fixed rate bond rates

17 May 2012 / by James Caldwell

For those looking to get a better deal from their cash and who are prepared to tie up capital for a set term, savers should give fixed rate savings bonds a closer look. Fixed rate bond deals are changing all the time so we have put together a selection of deals that are worth considering.

1 Year Fixed Rate Bonds

Currently Saga are offering a 1 year fixed rate bond paying 3.00% Gross/AER with deposits from £1. Saga fixed rate savings accounts are provided by Birmingham Midshires. For existing Nationwide customers the Nationwide e-bond 1 year provides up to 2.80% Gross/AER for deposits over £50,000 or more. For balances of £1 to £49,999 the Gross/AER is 2.55%.

2 Year Fixed Rate Bonds

Saga are offering an attractive 3.60% Gross/AER with a minimum deposit on their 2 year fixed rate bond while United National Bank are paying 3.50% Gross/AER for minimum deposits of £2,000 and you can choose whether interest is paid monthly or on maturity.

3 Year Fixed Rate Bonds

For a 3 year term Vanquis Bank are offering a rate of 3.61% Gross/AER for deposits of £1,000 up to £250,000. No withdrawals are available through the term. As an alternative option Scottish Widows Bank are offering 3.50% Gross/AER with a minimum deposit of £10,000.

5 Year Fixed Rate Bonds

If you are happy to tie up capital for 5 years then Saga offer an attractive bond paying 4.20% Gross/AER. Withdrawals are allowed but subject to a loss of interest. Scottish Widows Bank are paying 4.00% Gross/AER on their 5 year fixed term deposit account with a quarterly or monthly interest option. Minimum deposit of £10,000. 

Click here for a selection of our best fixed rate bonds.

Fixed Rate Bond Alternatives

If you are prepared to tie money away there are alternatives to fixed rate bonds known as structured deposit plans which typically have a 3 to 6 year term. These plans are cash based but provide the potential of stock market linked returns while protecting your initial deposit. As with fixed rate bonds these plans are eligible for the Financial Services Compensation Scheme (FSCS) up to £85,000 per person per institution in the event that the deposit taker defaults.

3 Year Deposit Plan

The Investec FTSE 3 Year deposit Plan currently has a target return of 17.25% on maturity  as long as the FTSE 100 final index level is higher at the end of the term than the initial index level at the start date. If at maturity the final index level is equal or lower you will not recieve the investment return but your original capital will be repaid.

Click here for more fixed rate bond alternatives.

* Data accurate as at 17/05/2012.


No news, feature article or comment should be seen as a personal recommendation to invest. If you are in any doubt as to the suitability of a particular investment you should seek independent financial advice.

© Fair Investment Company Ltd