LATEST FIXED RATE BONDS NEWS |
May 2012 - If you have £2,000+ to invest Tesco Bank are offering a one year bond offering savers
an interest rate of 3.50% and you can choose from having the interest paid monthly or annually. |
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WHAT ARE FIXED RATE BONDS
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"Fixed rate bonds" or as they are also called "Fixed Term Bonds", are a form of savings
account offering a fixed rate of interest to savers who commit their funds for a fixed term. The bonds can be fixed for a
variety of terms and many banks and building societies offer a selection ranging from 6 month to 5 years with 12 months/1
year being the most popular fixed rate savings bond.The interest on fixed rate savings bonds may be paid either
monthly or annually depending on what the bank or building society are offering and what you choose. Fixed rate savings bonds
paying annually will normally pay a higher interest rate than those that pay monthly. Even though UK interest rates are crashing
in 2009 there are still fixed rate bonds offering an above average rate of return. Above are the some of the
fixed rate bonds that are currently offering the best interest rates. Some of the best fixed rate bonds on
offer comes from Nationwide, requires a minimum investment of £1 and are covered by the FSCS.
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FIXED RATE BONDS TERMS AND CONDITIONS |
With a Fixed Rate Bond always check the terms and conditions as the extra interest you get over an
instant access account is because you are agreeing not too close the fixed rate bond for the term you choose. Some
fixed rate bonds will allow access to your funds in the form of a loss of interest (this loss could be as much as 365 days
worth of interest on a 5 year fixed rate bond) while others allow no early access. If you think you might need the money
before the end of the term you should consider another type of savings account and not a fixed rate bond.
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The table below will allow you
to compare some of the best fixed term bonds from UK banks and building societies.
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BANK OF LONDON & MIDDLE EAST
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4.60%
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5 YEAR FIXED TERM BOND
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ANNUALLY
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£25,000
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4.15%
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5 YEAR FIXED RATE BOND
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YEARLY
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£500+
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HALIFAX
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3.85%
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3 YEAR FIXED RATE BOND
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ANNUALLY
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£500
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TESCO BANK
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3.50%
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1 YEAR FIXED RATE BOND
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ANNUALLY
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£2,000
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CAHOOT
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3.60%
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1 YEAR FIXED RATE BOND
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ANNUALLY
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£25,000
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NATIONWIDE
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2.01%
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6 MONTH FIXED TERM SAVINGS BOND
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ON MATURITY
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£1+
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updated 02/05/2012.
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