Fixed Rate Bonds
Fixed Rate Bonds
Fixed rate bonds carry a fixed rate of interest for a specific period of time. They have very limited access – usually only for emergencies and even this carries a charge – but are a good way of saving because they allow your money to grow, risk free.
Features of fixed rate bonds:
- Minimum deposit – usually £1,000
- Fixed rate – choices are usually between 6 months and 5 years
- Guaranteed return
- Interest paid monthly, annually or on bond maturity
Fixed rate bonds will suit you if you have a lump sum to invest and are prepared to leave that money, untouched, for the entire term. With fixed rate bonds, you will know exactly how much interest your money will earn.
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