The majority of providers will not allow customers to access their inital savings deposit once it has been invested, or to make additional deposits, although some will allow customers access to their cash at the cost of an interest rate charge. As such, it is important for customers to carefully select a deal that will be best suited to their requirements. But there are some which will allow you to receive the interest monthly, rather than annually, or at maturity.
Benefits of fixed rate bonds
Fixed rate bonds offer customers the security of knowing how much return they will see from their savings, compared to many other types of accounts, such as instant access, which usually have variable rates. Using this type of agreement, customers interest rates are guaranteed to remain the same for the duration of the agreed term.
Drawbacks of fixed rate bonds
It should also be remembered that fixed rate bonds are not without their drawbacks. As their rates are guaranteed to remain the same for the duration of the agreement, customers will not be able to take advantage of any changes or improvements to interest rates that may occur in this time. Also, you will not usually be allowed to access the money until maturity.
The comparison tables on this page can help you find a fixed rate bond that suits your needs.