Fixed rate bonds saving accounts are issued by most banks and building societies. They are fixed interest rates which means the interest rate will remain selected peroid of time. Usaully between 6 months and 5 years. Most savers tend to choose bonds between 1-2 years.
Opening a fixed bonds account is very simple and most accounts can be opened online, in the branch or even by telephone.
There are hundreds of fixed rate bonds available so you can get the best deal possible online, as you can apply for an account with a Scottish building society even if you live in London.
Benefits of Fixed Term savings accounts?
One of the main benefits of fixed bonds savings accounts is that the interest rate is fixed so no matter whether the official Bank of England interest rates goes up or down your interest rate will remain the same thoughout the bond until it expires.
Opening and using the account is a very simple process and because you cannot withdraw any of the your money until the end of the term running the account very simple.
There is a huge market of fixed term bonds so there is plenty of choice when it comes to finding an account to suit your needs.
Negatives of Fixed Term savings accounts?
The main downfall is the fact that once you have opened the account you have no access to your money until the term ends, so you cannot withdraw your money if you need it in an emergency.
Most fixed term bonds only allow one cash deposit when you first open the account which means no further money can be put into the account at a later date.
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