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FirstSave launches new bond as savings rates plummet

FirstSave launches new bond as savings rates plummet
Date of Publication: Tuesday, 11 November 2014 11:20

FirstSave has launched a new 18 month bond paying 1.90%, which enters just below the market leading product in its sector.

 

The bond, which can only be managed online, requires a minimum investment of £1,000.

 

FirstSave, provided by FBN Bank (First Bank of Nigeria), has also lowered its seven-year bond to 3.25%, though this remains competitive compared to rival products. 

 

Bonds

As savings rates continue to flop and interest rates show little sign of rising again, fixed-rate bonds remain one of the few ways of scraping a little extra from your deposits.

 

The best rates on easy access savings barely exceeds 1.50% at the moment. The Kent Reliance (KRBS) offers this on its instant access saver, but savers will need to access a branch to open it.

 

The only higher rate on offer is with Saga, which has just launched an internet saver paying 1.55%. However, this is limited to the over 50s, and includes a hefty bonus which will expire after 12 months.

 

Find out more about bonus rates here.

 

Cash ISAs are little better – the standout rate is currently 1.81% from the Islamic Bank of Britain, and customers must give 120 days' notice to access their cash.

 

The Post Office and BM Savings offer instant access ISAs at 1.55% - both supported by a temporary bonus rate – and there are a glut of products offering 1.50%.

 

But this remains a massive disappointment considering the measures that were introduced this year to boost the personal allowance and make ISAs more flexible for savers.

 

For those unwilling to trust the more lucrative peer-to-peer model or who prefer not to save in instalments, savers are left with the option of switching to an interest-paying current account or investing into a fixed-rate bond.

 

The FirstSave bond improves the options available for short-term bonds, with several offering 1.90% over 12 or 18 months.

 

It also matches SecureTrust in the market for long-term bonds following the withdrawal of Skipton Building Society, which had been a strong contender in this sector for some time.

 

However, experts frequently warn against committing to such long terms, as it is difficult to predict how market trends will go and how competitive this rate is likely to be in a few years' time.

 

Keith McDonald

Which4U Editor

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Tuesday, 11 November 2014 11:20
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Top 5 Savings Accounts

Provider
AER
Notice
Interest Paid
Min Bal
Apply
View Full Table >
0.75%
Instant
Annually
£1,000
1.12%
Fixed term for 1 year
On Maturity
£10,000

Scottish Widows Direct Transfer Account

Scottish Widows
  • Minimum balance £1000
  • Deposits can be made by internet banking, telephone or post
  • No notice period or penalties for withdrawals
  • YOUR SAVINGS ARE PROTECTED UP TO £75,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

Bank of Cyprus UK 1 Year Bond

Bank of Cyprus UK
  • Interest is paid annually
  • Early withdrawals not permitted
  • Available to individuals (single and joint applicants)
  • Conditions are available here
  • Available in Sterling only.

Top 5 Fixed Rate Bonds

Provider
AER
Duration
Min Bal
Apply
View Full Table >
1.35%
Fixed term for 3 years
£1,000
1.90%
Fixed term for 5 years
£1,000
1.85%
Fixed term for 4 years
£1,000
1.30%
Fixed term for 3 years
£10,000
1.20%
Fixed term for 2 years
£10,000

Vanquis Bank 3 Year Fixed Rate Bond

Vanquis
  • Available Online Only.
  • Deposit between £1,000 to £250,000 for THREE YEARS in ONE PAYMENT and benefit from a guaranteed savings rate.
  • Annual or Monthly interest options available.
  • Sole or Joint Accounts.
  • Restricted to UK residents 18 years or older.
  • No additional deposits, withdrawals or closure during term.
  • Vanquis Bank is a UK bank with operations and call centres in London, Chatham, Bradford and Newcastle, and is part of the Provident Financial Group, a FTSE 250 company founded over 130 years ago.
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 BY THE FSCS - Financial Services Compensation Scheme

Vanquis Bank 5 Year Fixed Rate Bond

Vanquis
  • Available Online Only.
  • Deposit between £1,000 to £250,000 for FIVE YEARS in ONE PAYMENT and benefit from a guaranteed savings rate.
  • Annual or Monthly interest options available.
  • Sole or Joint Accounts.
  • Restricted to UK residents 18 years or older.
  • No additional deposits, withdrawals or closure during term.
  • Vanquis Bank is a UK bank with operations and call centres in London, Chatham, Bradford and Newcastle, and is part of the Provident Financial Group, a FTSE 250 company founded over 130 years ago.
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 BY THE FSCS - Financial Services Compensation Scheme

Vanquis Bank 4 Year Fixed Rate Bond

Vanquis
  • Available Online Only.
  • Deposit between £1,000 to £250,000 for THREE YEARS in ONE PAYMENT and benefit from a guaranteed savings rate.
  • Annual or Monthly interest options available.
  • Sole or Joint Accounts.
  • Restricted to UK residents 18 years or older.
  • No additional deposits, withdrawals or closure during term.
  • Vanquis Bank is a UK bank with operations and call centres in London, Chatham, Bradford and Newcastle, and is part of the Provident Financial Group, a FTSE 250 company founded over 130 years ago.
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 BY THE FSCS - Financial Services Compensation Scheme

Bank of Cyprus UK 3 Year Bond

Bank of Cyprus UK
  • Interest is paid annually
  • Early withdrawals not permitted
  • Available to individuals (single and joint applicants)
  • Conditions are available here
  • Available in Sterling only.

Bank of Cyprus UK 2 Year Bond

Bank of Cyprus UK
  • Interest is paid annually
  • Early withdrawals not permitted
  • Available to individuals (single and joint applicants)
  • Conditions are available here
  • Available in Sterling only.

Bank of Cyprus UK 1 Year Bond

Bank of Cyprus UK
  • Interest is paid annually
  • Early withdrawals not permitted
  • Available to individuals (single and joint applicants)
  • Conditions are available here
  • Available in Sterling only.

Bank of Cyprus UK 30 Day Notice ISA

Bank of Cyprus UK
  • Available for new subscriptions up to £15,240 for the current tax year or transfers from other ISA providers
  • Interest is paid annually into your Cash ISA
  • Access to funds subject to 35 days notice
  • Available to individual applicants aged 16 or over
  • Eligible deposits are protected up to £75,000 by the UK Financial Services Compensation Scheme

Axis Bank UK 1 Year Fixed Rate Bond

  • Minimum investment £1,000
  • Maximum investment £200,000
  • Eligibility: Individuals who are 18 years of age and older having satisfactory identity and address verification documents as per Axis Bank UK’s policies.
  • Standing orders: Can be set up for auto renewal, interest and maturity payouts.
  • Premature Withdrawal: Not allowed
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

Axis Bank UK 2 Year Fixed Rate Bond

  • Minimum investment £1,000
  • Maximum investment £200,000
  • Eligibility: Individuals who are 18 years of age and older having satisfactory identity and address verification documents as per Axis Bank UK’s policies.
  • Standing orders: Can be set up for auto renewal, interest and maturity payouts.
  • Premature Withdrawal: Not allowed
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

Axis Bank UK 3 Year Fixed Rate Bond

  • Minimum investment £1,000
  • Maximum investment £200,000
  • Eligibility: Individuals who are 18 years of age and older having satisfactory identity and address verification documents as per Axis Bank UK’s policies.
  • Standing orders: Can be set up for auto renewal, interest and maturity payouts.
  • Premature Withdrawal: Not allowed
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

Wellesley 1 Year Term

Wellesley
  • Investors can start with as little as £10
  • Rates are fixed for duration agreed.
  • Wellesley & Co offers a service called 'Early Access'. This enables customers to request access to their funds before the end of a lending term.
  • All lending is asset backed
  • Wellesley decides on which cases to lend on and handle the lending and collection of funds.
  • Wellesley & Co retain a portion of every loan that they make. This portion is subordinated to the Peer to Peer lender so act as a capital buffer and takes the first loss is a borrower defaulted on their loan and Wellesley were unable to sell the asset for as much as they had lent.
  • There are Provision Funds that investors can apply to for compensation in the case of loss of funds through a borrower not meeting loan repayments.
  • Wellesley is the first Peer to Peer lender to offer its lenders a combination of security over all loans and access to a Provision Fund of £2,834,444.
  • Wellesley offers early access to funds. There is no charge for this service however a customer’s rate of return that they receive will be realigned to fairly represent the period that their money has been committed.
  • YOUR SAVINGS ARE NOT PROTECTED BY THE FSCS - Financial Services Compensation Scheme.
  • Peer-to-peer lending can offer attractive returns. There is a risk you may lose some or all of your initial investment. However Wellesley do offer their own compensation fund.

Wellesley 2 Year Term

Wellesley
  • Investors can start with as little as £10
  • Rates are fixed for duration agreed.
  • Wellesley & Co offers a service called 'Early Access'. This enables customers to request access to their funds before the end of a lending term.
  • All lending is asset backed
  • Wellesley decides on which cases to lend on and handle the lending and collection of funds.
  • Wellesley & Co retain a portion of every loan that they make. This portion is subordinated to the Peer to Peer lender so act as a capital buffer and takes the first loss is a borrower defaulted on their loan and Wellesley were unable to sell the asset for as much as they had lent.
  • There are Provision Funds that investors can apply to for compensation in the case of loss of funds through a borrower not meeting loan repayments.
  • Wellesley is the first Peer to Peer lender to offer its lenders a combination of security over all loans and access to a Provision Fund of £2,834,444.
  • Wellesley offers early access to funds. There is no charge for this service however a customer’s rate of return that they receive will be realigned to fairly represent the period that their money has been committed.
  • YOUR SAVINGS ARE NOT PROTECTED BY THE FSCS - Financial Services Compensation Scheme.
  • Peer-to-peer lending can offer attractive returns. There is a risk you may lose some or all of your initial investment. However Wellesley do offer their own compensation fund.

Masthaven 1 Year Term

Masthaven
  • There is a minimum balance of £500 and a maximum balance of £250,000 for each account. You may have numerous savings accounts with us at any one time, however, there is a maximum total balance of £1,000,000 that can be held across all of your Masthaven savings accounts. Any funds held jointly will count towards each of your own individual limits.
  • Funds can be transferred into your Masthaven Savings Account by electronic transfer or debit card. Electronic transfer from your nominated bank account can be made using Faster Payments, BACs or CHAPS. You can make as many deposits as you like for 7 calendar days after a successful application, provided you stay within the product maximum of £250,000. Once the 7 day funding window is closed, you will no longer be able to transfer funds to your account.
  • You are not able to withdraw any money from your fixed rate bond until the end of your term.
  • YOUR SAVINGS ARE NOT PROTECTED BY THE FSCS - Financial Services Compensation Scheme.
  • Peer-to-peer lending can offer attractive returns. There is a risk you may lose some or all of your initial investment. However Wellesley do offer their own compensation fund.