Benefits of fixed rate bonds include:
- Competitive interest rates in return for keeping your cash locked away
- A variety of terms to choose from
- Online access offered by most providers
Fixed rate bonds are a way you can lock away some of your savings into an account that will accumulate interest. Halifax currently offers a fixed term fixed rate bond.
Fixed Saver key facts:
- Available for 1 or 3 year terms
- Interest paid monthly. Interest will be paid net of your income tax unless you register your account to receive gross interest
- Opening balance must be £500 or more
- Must be aged 16 years or over
- At the end of the fixed term your account will automatically transfer to an Instant Saver account
As the Halifax Fixed Rate Saver is fixed term bond no withdrawals are allowed once you create the account. Early closure is permitted but if you do close your account early you will lose an amount equivalent to: 1 year term - 90 days’ gross interest or 3 year term - 270 days’ gross interest. Meaning you may get back less than you opened the account with. No additional deposits are allowed either.
Before you choose the deal for you, compare fixed rate bonds side by side in our table. Compare Halifax fixed rate bonds with other deals in the market - make sure that when you lock your money away for a fixed period you are comfortable with not having access for the term duration. Generally speaking the longer you are prepared to lock your money away in a fixed rate bond the better the level of interest paid. As with all savings accounts you should compare deals from a range of providers before committing to one. As well as fixed rate bonds there are a number of alternative saving options which you should consider such as structured deposit plans - a selection of plans are available on this site.
As well as a fixed rate bond you may wish to consider alternative savings options such as;
- tracker – this type of bond has interest rates linked to those set by the Bank of England so any changes to the base rate will either increase or decrease how much interest you receive, affecting your gains.
- Structured Deposits – Structured deposits normally offer higher potential interest rates than bonds, but you are not guaranteed to receive any interest payments, there is a risk you will only get your original deposit back at the end of the term. This is because structured deposits are normally linked to a share index or indices, like the FTSE 100. Getting an interest payment from this type of plan depends on if the index the plan is tied to perform in the way set out in the structure deposit. Because you risk earning no interest with this type of plan you should carefully evaluate if it is right for you before you take one out.
- Savings Account – Savings account may be better suited for people who think they may need sudden access to their savings. Although they normally offer worse rates of interest than deposits or bonds they do allow you easy access to your funds should you ever need them.