21 Nov 2024

Five year bond rates hit 6 month high

The average rate for five year fixed rate bonds has hit its highest level since July 2011.

Average 5 year fixed rate bonds*
Today	4.14%
July 2011	4.20%
January 2011	4.06%
January 2010	4.56%
Source: Moneyfacts.co.uk 11.01.2012

Provider	Account	Rate
BM Savings	5 Year Fixed Rate	4.65%
Vanquis Bank	Vanquis Bank High Yield	4.65%
AA	5 Year Fixed Rate Savings	4.60%
State Bank of India	Hi Return Fixed Deposit	4.50%
SAGA	5 Year Fixed Rate Savings	4.50%
Source: Moneyfacts.co.uk 11.01.2012

* The average figures have been based on the whole of the five year bond market, therefore reflecting both the lowest and highest rates available at present.

Louise Holmes, spokesperson for Moneyfacts.co.uk, commented: “A rise in average five year bond rates should give savers looking to invest over the long-term a much needed boost.

“Rates began to gradually rise towards the end of last year, with the average now at its highest level for six months, making pleasing reading for investors.

“Many of the best deals available are offered by smaller or lesser-known providers. Savers who want to make the most of their money would be wise to research the market thoroughly to achieve the best bond for them, rather than turn immediately to the high street.

“The golden rule to bear in mind when looking at long-term bonds is whether they allow early access to funds. The majority of fixed rate bonds carry penalties such as loss of interest for those who withdraw funds early, so savers must be committed to locking their money away for the duration of the term.”

Moneyfacts Group
Moneyfacts is the UK’s leading independent provider of personal financial information and our data is used and trusted throughout the financial industry.

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