For deposits which exceed the interest-paying limit or your maximum permitted balance on your savings account, a fixed rate bond can be a good option. They usually have much higher thresholds for interest than savings accounts and the interest rate you receive will be fixed for the life of the bond.
1 year, 2 year, 3 year and 5 year fixed rate bonds are commonly offered by a variety of institutions, including HSBC. The longer the bond is for, the better rate of return you will usually receive. You may have the option to withdraw money from your bond before it matures, but this will usually incur a financial penalty.
If you are not currently earning interest on all of your savings, one or more fixed rate bonds can allow you to start getting more from your money. This can help to protect your money from decreasing in real world value due to the effects of inflation and should see your investment grow in value in most cases.
Why choose a HSBC fixed rate bond?
HSBC is the world’s fourth largest bank. Their fixed rate bonds offer customers the following key advantages:
Minimum deposit of £2,000
Maximum deposit of £1million
Interest can be paid monthly, annually or on maturity
Manage your account in branch or over the phone
For deposits under £50,000 you can close the bond early in exchange for 90 days interest
Restrictions
HSBC’s fixed rate bonds come with the following conditions:
For amounts over £50,000, no withdrawals can be made before the bond matures
Compare HSBC fixed rate bonds
HSBC currently offer fixed rate bonds with terms ranging from 3 months to 3 years. They also offer a number of cash ISAs. To make an investment over a longer period or to find a higher rate of interest, you may want to take a look at other providers such as Aldermore.
Getting the best deal on fixed rate bonds
Exactly what interest rates and features different providers will offer on their fixed rate bonds will change over time to reflect market conditions and consumer demand. This can make it difficult for customers to keep track of which financial products offer the best deal for them.
Our comparison table at the top of the page lets you quickly and easily compare all of the most competitive fixed rate bonds on the market. These offers are regularly updated so it is worth checking back frequently to see the more recent deals.
Investing in a fixed rate bond is a serious commitment, so make sure to carefully consider your financial situation and aspirations before making a decision. This should help to ensure that you end up with a choice you remain happy with.
