Is a Bank of Scotland fixed rate bond right for you?
The best way to get the most out of your savings depends on how much you have in the pot. Traditionally, people who have wanted to get the most from the money they are putting aside have looked to savings accounts.
Savings accounts offer competitive rates of interest for smaller amounts of money. However, for the majority of savings accounts, the interest rate on offer reverts to the bank’s underlying interest rate after the first year. Other savings accounts may have different conditions such as a maximum balance that you are permitted to have at one time, meaning that any money above the limit will likely earn no interest at all.
To maximise the return on your savings, you could explore your fixed rate bond options. If you confident that you will not need to use your savings for a period of time, fixed rate bonds may help grow your savings faster than other available options; they offer a higher rate of interest in exchange for tying up your savings for the duration of the fixed term. You can find a number of fixed rate bonds on the market, which usually run for either 1 year, 2 years, 3 years or 5 years. Typically, longer fixed rate bonds offer the highest interest.
Fixed rate bonds enable you to access higher interest rates, which could protect your savings from losing value in real terms.
Why choose a Bank of Scotland fixed rate bond?
The Bank of Scotland have their own fixed rate bond which offers:
Minimum deposit of £2,000
Early closure available if you need to access your savings
Interest paid monthly or annually
Interest can be paid into the bond, allowing your savings to grow faster
You can manage your account online, in branch or over the phone
