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Fixed-term savings can offer security and returns

Fixed-term savings can offer security and returns

07 September 2010 / by Paul Dicken

With economic uncertainty affecting the value of company stocks, savings accounts can keep your capital protected while offering a return if you are willing to lock your savings away.

One account currently on the market paying interest above the rate of inflation is from Scottish Widows Bank, offering up to four per cent annual interest.

The bank is currently offering a five year fixed term deposit account, requiring a minimum personal investment of £10,000, with no withdrawals allowed.

The account offers tiered options for interest repayment. There is the four per cent gross/AER (annual equivalent rate), paid annually, or a rate of 3.94 per cent gross if paid quarterly, or 3.92 per cent gross if paid monthly.

Offering three per cent gross/AER interest for balances of £10,000 and over, Santander’s 15 month fixed rate bond also offers the option of investing less than £10,000 for a lower rate of return.

Savers can earn 2.75 per cent gross/AER interest for initial balances between £1 and £9,999.

The rates on the Santander are only available for deposits made by 1 October 2010. The accounts are open to new and existing customers, with no withdrawals allowed during the 15 months.

The Principality Building Society currently has 18 month and 9 month fixed rate accounts available.
The 18 month fixed rate bond is open to both new and existing customers, offering a fixed rate of up to 2.80 per cent AER (the rate if interest is accumulated and paid as a single amount annually). 

Interest is paid monthly or on maturity and the account requires a minimum deposit of £5,000.

The 9 month option will pay up to 2.6 per cent AER, either monthly or on maturity of the bond.

There is also a £5,000 minimum deposit, with the maximum deposit of £250,000 for either scheme, and no withdrawals are allowed during the terms.

© Fair Investment Company Ltd