Features of Saga fixed rate bonds include:
- 1 and 2 year terms available
- Earn a fixed interest rate across the whole term, so you always know how much interest you will earn
- You can choose to receive yearly interest or monthly interest, to suit your requirements..
- No additional deposits are permitted during the term of the plan
- The Saga Fixed Rate Savings Accounts are available only to UK residents aged 50 and over
- At the end of the 3 year term, Saga will reinvest your funds into a variable rate easy access savings account, unless instructed otherwise
- Invest any amount from £1 to £10 million, you can invest up to £20million in a joint account
- Withdrawals are allowed by post on terms of 2 years and above subject to a charge and notice period , both of which will vary depending on the length of time the plan has been in place
Before you decide you could compare the features of the Saga fixed rate bond against other leading fixed rate savings products using the free comparison table above.
In addition to comparing different fixed rate savings products you may want to also consider other types of saving plan such as:
Another sort of bond, instead of your interest rate staying the same over the bonds term it can may go up or down in response to any changes made to the Bank of England’s base rate of interest, which it tracks. This means you may get a better or worse interest rate. As a result of this it is not possible to predict how much you will get in return at the end of the investment like you can with a fixed rate bond.
Structured deposits also require you to lock your savings away without access for a period of time. They normally offer higher potential interest rates than bonds, but you are not guaranteed to receive any interest payment there is a risk you will only get your original deposit back at the end of the term. This is because structured deposits work by being 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 performs in the way set out by the terms and conditions of the structured deposit.
Instant access savings accounts
Instant access savings accounts tend to accrue lower rates of interest than other savings plans like bonds or structured deposits, but they allow you take unlimited withdrawals.