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3 Year Fixed Rate Bond and Bonds

3 Year Fixed Rate Bonds.

November 2012 - Coventry Building Society have relaunched the 3 year poppy bond offering 3.25%. The Poppy Appeal will receive a donation from the Coventry equal to 0.05% of total funds held in this bond. So, for example, if you invest £10,000, they will make a donation of £5. Since 2008, they have raised over £6.7m for the Poppy Appeal.

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 useful for those who require their savings to give them a regular income stream.

STATE BANK OF INDIA

Invest From £1,000+

3.65% AER

Branch or postal applications.

METRO BANK

Invest From £500+

3.51%

Annual Interest.

VANQUIS BANK

Invest From £1,000+

3.36%

Online applications only

AA

Invest From £1+

3.30%

Postal applications only

BUCKINGHAMSHIRE BUILDING SOCIETY

Invest From £100+

3.30%

Branch and postal applications only

last update November 2012.

3 year fixed rate bonds review