If you have some funds that you wish to lock away in an investment for a predefined time-frame you may be wondering if a Scottish Widows Bank fixed rate bond is the right choice for you. Scottish Widow fixed rate bonds are currently unavailable however they do offer a ‘fixed term deposit account’ which still offers a fixed rate of interest, however instead of it accruing on your bond it gets paid into a different account you nominate. Before you decide if this product is right for you can compare it with other options using the comparison tables below.
Scottish Widows Bank fixed term deposit account feature:
- Choice of a 1 or 3 year investment
- Choice of interest being paid monthly, quarterly or annually
- Interest can be paid to a another Scottish Widows Bank deposit account or an external bank account held in your name
- Minimum deposit of £5,000
- Maximum deposit of £5million
- Can be opened by new or existing Scottish Widows Bank customers
If you are considering a Scottish Widows fixed term deposit, then before you take one out you may wish to consider other options, as these kinds of investments require you to lock your funds away for a set period of time without access to them it is a good idea to shop around beforehand to try and find the plan that fits your requirements best. You can use the comparison tables on this page to look at a range of fixed rate deposits and other types of investments from various providers to compare their different features.
Other types of investment you might want to look into include:
Tracker bonds – This is another type of bond so it lasts for a pre-fixed duration but instead of your interest rate staying consistent throughout the bonds term, it will change in relation to any increases or decreases in the Base Rate set by the Bank of England. This means you could get a better or worse interest rate over the bond’s term. Due to this variation you cannot predict beforehand how much you will receive in return at the end of the bond’s term.
Structured Deposits – 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, the conditions to receive an interest payment is dependent on the index or indices (such as the FTSE 100) meeting certain criteria over the plans course, as set out in the terms and conditions.
Savings Account – 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 from the account.