If you have a sum of money you can afford to tie away without access to achieve a better interest rate than you might expect with some instant access options then you may be wondering if a RBS fixed rate bond is right for you. RBS have one or two years options but before you decide you could check out the comparison tables below to compare fixed rate bond offerings from various providers to see if you can find the one you feel is best for your specific requirements.
RBS fixed rate bonds feature:
- 1 and 2 year terms
- Minimum deposit of £5,000
- Maximum deposit of 500,000
- Partial withdrawals are not permitted after the fixed term start date
- Early closure permitted but may be subject to a gross interest charge in some circumstances
As a fixed rate bond’s usually involve you losing access to your savings for a predefined amount of time, before you do so you may want to research different fixed rate bonds to see which one you think presents the best features for you.
Fixed rate bonds can vary but usually share a few common features you should keep in mind when shopping around for one such as:
- A consistent rate of interest
- You cannot make any withdrawals or additional deposits once you have set up the account
- You cannot close the account early, if you can you may incur some form of forfeit
- Many bond providers will convert your bond into an instant access savings account when the term ends unless you otherwise tell them what you wish to be done with it
In addition to shopping around for different fixed rate bond options you may want to consider alternative savings plans such as:
- Tracker bonds – A different kind of bond, but unlike fixed rate bonds the interest rate will vary over the bond’s term in relations to changes made to the base rate set by the Bank of England. This means if after your account is opened the base rate improves you will still benefit from the rise, in the same vein however if it decreases you will get a worse interest rate.
- Structured Deposits – Structured deposits also involve you locking your savings in an investment for a set period of time. However structured deposits normally offer better potential rates of interest but getting an interest payment is not guaranteed. As the interest gain is dependent on how the share index or indices the particular plan is linked to performs. You risk only getting back your original investment with no interest payment with this type of saving plan.
- Savings Account – Instant access savings accounts normally offer lower interest rates than bonds or structured deposits, but 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 or making a withdrawal.