Fixed Term Bonds provide savers with a great incentive driven method of saving, with high interest rates fixed for a chosen period of time, while encouraging money to be left to grow. By fixing the rate, the base rate and the best fixed bond rate are unconnected, as the fixed rate remains frozen until the bond matures.
It is important to take time to consider each term before opening your account, as the can vary greatly, usually between 6 months and 5 years. You must be sure that you can afford to lock your money away for the length of time you choose, as early withdrawals lead to penalties.
It may be worth considering keeping some of your savings aside in an instant access variable rate account. This will provide you with back-up should it be required, allowing you to retain the savings in your bond.
There are many banks and building societies offering fixed rate bonds and researching them all to find the right account for you can quickly become confusing and time consuming. At Which4U we compare a number of bonds available from a range of providers, offering key information – such as the fixed bond rate and terms available, allowing you to
compare accounts side by side to find an account to suit your saving needs.
