How can you tell if you are getting the best possible deal on your savings? If you would like to earn the highest available interest rate, a savings account will usually offer this.
It should be noted that interest in savings accounts is only paid up to a certain deposit threshold You will generally earn no interest on any balance above this threshold. In addition, the majority of savings accounts come with a limit to the amount you can deposit.
Fixed rate bonds allow you to earn a guaranteed rate of interest for the life of the bond, which will most commonly be 1 year, 2 years, 3 years or 5 years. The longer the bond lasts for, the higher the interest rate you will usually be offered.
Putting your savings into a fixed rate bond means you won’t usually be able to use that money for anything else until the bond matures. However, some providers do allow you to remove funds early, in exchange for a financial penalty.
If you are not earning money on your savings then their real world value is likely to be decreasing due to the impact of inflation. Putting your cash into one or more fixed rate bonds can prevent this and should result in the buying power of your savings increasing by the time your bond matures
Why choose a Lloyds fixed rate bond?
Lloyds Banking Group is one of the UK’s biggest and best known financial institutions. They offer the following benefits with their fixed rate bonds:
Minimum deposit of £2,000
Maximum deposit of £1million
Interest can be paid monthly, annually or when your bond matures
Manage your account by phone and in branch
Restrictions
When taking out a fixed rate bond with Lloyds, please be aware of the following:
You must be at least 16 years old
You must be a UK resident
No early withdrawals are permitted
Compare Lloyds fixed rate bonds
Lloyds currently offer 2 year fixed rate bonds to their customers. If you would like to take out a bond over a longer period in order to earn a better rate of interest, please take a look at other providers such as Aldermore.
Getting the best deal on fixed rate bonds
Interest rates and other conditions on savings accounts, including fixed rate bonds, change regularly to reflect shifts in market conditions and customer demand. This can make it hard for consumers to keep up with which brands and products are currently offering the best value.
Using our fixed rate bond comparison tool above, you can quickly and easily see which products represent the best deal for you. We frequently update these deals with the most competitive offers we can find to save you the trouble of manually comparing different brands and their products.
Before making an investment into a fixed rate bond, you need to be confident you are making a choice you will be happy with for the full term of the account. To achieve this, make sure you carefully reflect on the return you would like to see and your existing financial commitments and any that are likely to arise in the foreseeable future.
