Features of Aldermore fixed rate bonds include:
- A range of interest rates depending on the term
- Minimum balance of £1,000
- Accounts that can be managed online, over the phone or by post
- No fees
Aldermore is a fairly new UK-based bank that offers savings accounts and mortgages. They pride themselves on offering ‘straight-forward, dynamic banking’.
There are a number of other banks and building societies which offer fixed rate bonds, so it could be worth comparing Aldermore’s fixed rate bonds with those offered by others to ensure that you are getting the best available deal.
For information on some of the best fixed rate bond deals that could be available to you, please see the comparison tables located on this page.
If you can lock your money away for a set period of time, you might also want to think about a tracked fixed bond as well. These are similar to fixed rate bonds but the interest rate you receive can vary over the course of the term reflecting changes in the base rate set by the Bank of England. This means if interest rates improve during your bond term you will get a better rate, however in the same fashion they could also reduce leaving you with less if the base rate decreases.
Structured deposits may be another financial product that interests you. They also require you to lock your money up in a plan for a set period of time; however they generally offer higher interest rates than bonds.
Although they have the potentially to earn you more a return on your investment is not guaranteed with this type of plan. Structured deposits offer you returns based on the performance of a share index such as the FTSE 100. If over the period the index fails to perform in the way your plan specifies you may not earn any interest on your deposit, you will however still receive the full amount you received back.
If you feel that you may need to have your money more readily available then an instant access savings account may be a better option for you. Although these tend to receive lower interest rates compared to bonds and structured deposits they do have the advantage that many will allow you to make unlimited withdrawals without any kind of penalty