Tesco fixed rate bonds key facts
- A choice of 1, 2, 3, 4 or 5 year bond lengths
- No early closures or withdrawals can be made
- Minimum deposit of £2000
- Maximum deposit of £5million
As a bond by its nature requires you to lock away your savings without access for a set period of time before you do so you should shop around to make sure you take out the most appropriate plan for your specific needs.
In addition to trying to find the best fixed rate bond for your specific requirements you may want to consider other savings options to see if another better suits your needs.
Alternative savings plans include:
- Tracker bonds – a slightly different kind 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 your interest rate can vary it is not possible to predict how much you will receive in interest at the end of the bond’s term like you can with a fixed rate plan.
- Structured Deposits – Structured deposits 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. Structured deposits are normally linked to at least one share index such as the FTSE 100. The terms and conditions of the plan will set out a criteria of how the index or indices the structured deposit is linked to must perform in order to receive an interest payment.
- Savings Account – Instant access savings account tend to accrue lower rates of interest than other products like bonds or structured deposits, but they do normally permit unlimited penalty-free withdrawals. So savers can access their money at any time and do not need to wait until the term finishes.