AA Fixed Rate Bonds
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The AA Fixed Rate Bonds
AA ISA Fixed rate product key facts:
- Open with a deposit or transfer in of at least £500
- No upwards limit
- Interest calculated daily and paid yearly
- At the end of the fixed term your money is transferred to a holding account where it will retain its tax free status until you decide what to do with it.
- No additional deposits or withdrawals can be made during the fixed term
- Use your ISA allowance minus any contributions you may have already made to a stocks and shares ISA this tax year
- If you need to close the plan early there will be a breakage charge
If you are looking for a plan which requires you to lock away your money for a set time period you most likely want to make sure you’re getting the best deal you can.
You can look below at some of the latest fixed rate bonds available from various providers to give you an idea of what some of your different options are.
Although fixed rate bonds have the advantage of letting you know exactly how much interest you are going to be earning over the period of the plan. However if while you are locked into a bond interest rates rise, your plan may no longer be competitive, For this reason you may want to also consider a tracker plan.
With this plan type interest rates set by the bank of England raise, so too will the interest rate you receive on the bond. On the other hand it may also fall if the base rate does.