We all want to earn interest on our savings, but it’s not always obvious what the best way to do this is. For smaller sums, it is usually best to put your money into a savings account, as these generally offer the best rates of interest – but they usually have a maximum balance or a limit over which they will not pay interest.
Fixed rate bonds, such as the ones offered by Barclays, provide a guaranteed rate of interest for the life of the bond. This means that your savings should not be losing value relative to inflation and will usually increase in real world value.
Most fixed rate bonds run for 1 year, 2 years, 3 years or 5 years and the longer the term of the bond, the higher interest rate you will tend to receive. You may be able to withdraw money from your bond early if you really need to, but this will usually incur a penalty, which is normally in the form of lost interest payments.
Fixed rate bonds are a relatively simple way to start earning a return on the whole of your savings. They can be set-up alongside your existing current account, so should not interfere with your regular banking.
Why choose a Barclays fixed rate bond?
Barclays are one of the UK’s best known high street banks. The offer the following terms on their fixed rate bonds:
Minimum deposit of just £500
Maximum deposit of £1million
Interest can be paid monthly or when the bond matures
Restrictions
Barclays fixed rate bonds are subject to the following conditions:
You must be 18 years old or over
You must be a UK resident for tax purposes
You cannot make any extra deposits or withdrawals until the bond matures
Compare Barclays fixed rate bonds
Barclays are currently only offering 1 year fixed rate bonds, so if you are looking for a longer term investment you will need to consider alternate providers, such as Aldermore.
Getting the best deal on fixed rate bonds
The interest rates and conditions on fixed rate bonds change regularly in response to market conditions and customer demand. As a result, knowing which brands and products currently offer the best deal for consumers can be tricky.
You also need to carefully consider your own needs and circumstances, to make sure you are selecting the best fixed rate bond for your personal requirements.
Our table at the top of the page is constantly updated with the very best fixed rate bonds currently available, so please make sure to check in regularly to find the best savings deals on the market.
