If you can afford to put some money aside and not have access to it for a set period of time, then a Principality fixed rate bond might be able to offer you a better rate of interest than their instant access options. Before you decide however you can use the comparison table below to look at fixed rate bonds and other saving plans from various different providers.
Principality fixed rate bonds feature:
- Invest from £500 to £2million
- Terms of 1, 2, 3, and 5 years
- Additional deposits permitted while the bond remains on sale
- No withdrawals permitted before the end of the bond’s term
- Choice of monthly or annual interest payments
Some Principality fixed rate bonds permit early closure of the account; however early closures may be subject to a loss of a certain amount of days worth of interest, depending on the bond’s length. You may receive back less than you originally invested if that amount of interest has not yet accrued.
As opening a Principality fixed rate bond requires you to lock away your savings for a set period of time before you do so you might want to consider alternative types of saving plan as well as researching different fixed rate bonds.
Alternative saving plans include:
While this is another bond, the interest that accrues on it is not at a fixed rate. The interest rate you receive will vary in accordance to changes made to the Bank of England’s Base Rate which it ‘tracks’ This means your interest rate may get better over the bond’s term in could also get worse however.
Like fixed rate and tracker bonds a structured deposit requires you to lock up your funds for a period of time however they generally offer better potential interest payments, but they are not guaranteed so you may only get your original deposit back. This is because your interest payment it dependent on how the index or indices the plan is linked to perform. The structured deposit will state how the index or indices needs to perform of the deposit’s term for you receive an interest payment, if the index fails to perform in this way then you will only receive back your original investment with no interest on it.
Instant access savings accounts tend to offer lower interest rates than structured deposits or bonds, however they will usually allow you to make unlimited penalty free withdrawals so you can quickly access your savings if you need to.