Fixed rate bonds offer an effective method of making your savings grow from high interest rates paid on balances. The terms offered usually range from 6 months, to 5 year fixed rate bonds, each of which may pay a different interest rate, depending on a number of factors, which include the risk to the provider – as rates could drastically fall, thus paying over the odds.

Fixed rate or fixed term bonds have 2 main differences from your average instant access savings accounts, these being that the rate at which you agree to upon opening the account will remain the same throughout the life of the bond, and the other difference is that the term is also fixed, so you cannot access your savings until the bond matures. Early withdrawals tend to result in a penalty.

One year fixed rate bonds are generally a safe bet, as you never know what might change over any length of time, so you may find you require your cash within a longer period. You may find it useful to keep some of your savings aside in a more flexible saving, so you're not 'putting all of your eggs in one basket'.