Fixed rate bonds are one of the most common ways to protect and grow the value of your savings. They offer a dependable rate of interest for the life of the bond, preventing your savings from losing their value relative to inflation and usually increasing the real world value of your money.
For smaller amounts of money, a savings account will usually offer a better rate of interest than a fixed rate bond.
However, if your savings are above the limit where your savings account will pay interest or your maximum permitted balance, it can be well worth transferring the balance into a fixed rate bond. This will allow you to start getting a return on all of your savings without disrupting your day-to-day banking.
The most common types of bond last for 1 year, 2 years, 3 years or 5 years, with the longer term bonds generally offering higher rates of interest. Some will allow you to withdraw funds early if necessary, but there is usually a penalty for this in the form of lost interest payments.
Why choose an Aldermore fixed rate bond?
Aldermore are a retail bank offering both personal and business banking services. They specialise in lending and savings for SMEs and individuals and pride themselves on their quick, slick service.
Aldermore offer the following advantages when taking out one of their fixed rate bonds:
Minimum deposit of just £1,000
Maximum deposit of £1million
Open an account online in minutes, including all ID checks
Manage your account online, by phone or post
Won Best Online Savings Account Provider at the Your Money Awards 2014
Restrictions
The following are conditions you must meet in order to qualify for an Aldermore fixed rate bond.
You must be 18 years old or above
You must be resident in the UK and liable for UK tax
You must have a UK bank or building society account in your name
You cannot make withdrawals or close your account before your bond matures
Compare Aldermore fixed rate bonds
Aldermore offer a range of fixed rate bonds over different set periods from 1 year to 5 years. Below are links to three of their most popular products.
Banks and building societies change the interest rates and other conditions of their products on a regular basis to match market conditions and customer demand. This means that exactly which brands and products are offering the best deals changes all the time.
Your own personal circumstances and requirements will also make a difference to which product is right for you, so it’s important to carefully compare all of your options before making a decision. Our fixed rate bond comparison table above is regularly updated with the very best deals currently available, so make sure to check back regularly for the latest offers.
