If your looking to get competitive interest rates and you don't mind locking your cash away for a period lasting between 6 months and 5 years, you might want to consider fixed rate bonds.
These accounts are different to regular savings accounts, as the rate you are offered upon opening the account is fixed for the chosen term. This means that the bonds rate will not change to reflect fluctuations to the Bank of England base rate.
This can be a very handy feature, as if rates were to fall during the term, your rate would remain the same, therefore giving you financial advantage over any other
savings accounts offered to new and variable rate customers.
However, there are two sides to this coin, as rates could also increase during the term, which would mean that your bonds rate would be lower than other savings accounts on the market.
For this reason, it is always worth doing a bit of research around the rate trends and if you pick the right time, you could earn some impressive return from a fixed term bond
