Fixed Term Bond Accounts offer a unique method of saving by fixing the interest rate and the term, so you can decide how long you want to lock your money away while keeping a rate that is fixed for the term you choose.
The advantage of a fixed term bond is that savers are not only encouraged to leave their money to grow, but can also benefit from a rate that is not affected by falling bank rates. This means that if you were to lock your savings in at a high interest rate, and bank rates fell during the term, you would continue to earn the higher rate specified upon opening your bond.
Fixed term bonds tend to offer rates that are higher than regular
savings accounts. This is because there is an element of risk involved, as rates could increase during the fixed term, which could leave you earning a lower rate than that offered to new or variable rate customers.
