If you want to get the best returns on your savings, fixed rate bonds should be considered. If you can afford to lock your money away for a fixed period of time, generally ranging between around 6 months and 5 years, you may find that fixed rate savings accounts offer the best option for your savings.
Unlike regular savings accounts, fixed term bonds allow you to fix on an interest rate that will paid on your investment for the term you choose. This is great if you can find a good rate, especially if bank rates fall during the period, as most variable rate accounts would be paying less than the rate at which you are fixed on.
If you intend to deposit more than £85,000 into a fixed rate bond, it is important to look into your proposed provider to find out what compensation scheme it employs, should it fall into financial difficulty. For more information, check out our
Top Ten Savings Tips.
To find the right home for savings, fixed rate bonds are compared at Which4U, allowing you to easily see all of the important information and choose the right fixed rate bond for you.
