Compare Leading Fixed Rate Bonds
If you have a lump sum you wish to invest a fixed rate bond may help you to make the most of your money, if you can afford to keep your money locked away.
Bath Building Society are not currently offering any fixed rate bonds however there are still many UK providers who are. You can compare top UK fixed term deposit accounts in our comparison table below:
Although the terms and conditions of fixed rate bonds vary, they normally share some characteristics such as;
- Having a minimum opening balance, commonly between £500 and £2000 although some can be more or less
- A fixed rate of interest that will not change no matter what happens to the market
- Guaranteed returns
Other types of plan you may wish to think about
- Tracker bonds – These are similar to fixed rate bonds, but the rate of interest you earn over the course of the bond may vary, this is because the rate you receive is linked to the base rate set by the Bank of England. This means that if over the bond term the base rate rose you would receive higher interest payments, there is however the risk that if the base rate dropped so to would the rate on your bond.
- Structured Deposits – Like a bond a structured deposit requires you to lock up your funds for a period of time. This type of plan is normally tied to an index such as the FTSE 100. If over the plan the index or indices perform in a certain way you will receive your original investment back plus an interest payment typically larger than those offered by bonds or savings accounts. However if it does not perform in a certain way set out at the start of the plan you will receive your investment back but will no gains on it, so it is a risk that needs to be carefully considered beforehand.
- Savings Account – If you are looking into how you can earn interest on your savings while maintaining access to them should you ever need them before the end of the term then an instant access savings account may be the solution to you. Although they do offer lower interest rates than bonds or structured deposits, they usually offer unlimited free withdrawals meaning if you should ever need your savings you don’t need to worry about any forfeit for closing the account early.