3 Year Fixed Rate Bonds Best Buy

Our current best buy 3 year fixed rate bond is the Hisave fixed rate bond from ICICI bank. This bond is currently paying one of the highest rates of interest at 4.15% and customers have the option to have the interest paid monthly or annually.   Although ICICI bank has its roots in India they are covered under the UK's Financial Services Compensation Scheme meaning a saver is entitled to claim up to £50,000. For joint accounts each account holder is treated as having a claim in respect of their share so, for a joint account held by two eligible depositors, the maximum amount that could be claimed would be £50,000 each (making a total of £100,000). The £50,000 limit relates to the combined amount in all the eligible savers accounts with ICICI including their share of any joint account, and not to each separate account.  If you are after a shorter period ICICI also offer a Hisave 2 year fixed rate bond paying 3.70% or for a longer period a 4 year fixed rate bond is available at 4.25%.

What are 3 year fixed rate bonds?

A fixed rate bond is a savings account that rewards savers for longer term savings. With a 3 year fixed rate bond you are required to not access the bond for 3 years and in return for this you should expect a far higher rate on interest than on an instant access savings account. Because of the timescale it is important that you have emergency funds elsewhere as normally you won't be able to use the money in the bond until the end of the 3 years. 3 year fixed rate bonds often give you the option of having the interest paid annually or monthly and the monthly option can be particulary useful for those who require their savings to give them a regular income stream.