You are here: Home - Saving & Banking - News -

The six best short-term bonds on the market

0
Written by: Paloma Kubiak
31/03/2017
If you’re looking for the best returns on your cash but you don’t want to lock away your money for too long, here are the top short-term bonds available.

Savers looking for a bit of extra security but not wanting a long-term commitment could consider short-term bonds.

Moneyfacts data shows that fixed bond rates have been edging up in recent weeks and 18-month bonds actually pay more than their two-year counterparts.

However, it’s important savers are aware of the restrictions of these kind of savings products as many won’t let you make further additions and earlier access, if allowed, could incur hefty penalties.

But if you’ve got a lump sum to invest, here are the top short-term bonds (12-18 months) currently on the market:

BLME: 18-month bond paying an expected profit rate of 1.55% AER.

Moneyfacts said this product is the market-leader for its term, provided you’re willing to tie up your money for 18 months. It’s a Sharia compliant account which means it pays an expected profit rate of 1.55% AER, rather than a guaranteed rate. It doesn’t permit further additions or withdrawals, and you’ll need a hefty minimum investment of £25,000 as well as a BLME-linked current account.

The Family Building Society: 18-month bond paying 1.52% AER

The minimum investment is £10,000 to get the 1.52% AER and it can be opened online, by post or in branch. It doesn’t allow early access and further additions aren’t permitted either.

Paragon Bank: one-year fixed rate bond paying 1.51% AER

This is an online-only deal that pays 1.51% on a lower minimum investment of £1,000, and although the full one-year term must always be served, it offers the chance for further additions to be made for a limited period.

Atom Bank, Ikano Bank and BLME: one-year fixed rate paying 1.50% AER

Mobile-only Atom Bank pays 1.50% AER on a minimum £50 deposit and it allows further additions to be made up to a week after opening the account. However withdrawals and early access isn’t permitted.

Ikano Bank’s offering of 1.50% AER on its one-year bond is on a minimum £1,000 investment. The account can only be opened and operated online and it doesn’t allow withdrawals or early access. Swedish Ikano Bank comes under the protection of its own country’s compensation scheme, protecting savers on up to €100,000. See YourMoney.com’s ‘Should I entrust foreign banks with my savings?’ for more information.

BLME’s second bond makes the charts, this time with the 12-month version of the Premier Deposit Account. This Sharia compliant account pays an expected profit rate of 1.50% AER on a minimum investment of £25,000, with all other features mirroring those of its 18-month counterpart.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
2276283-confusedwoman
Ladies: mind the pensions gap

When it comes to retirement, there’s a glaring pension gap between men and women making it more prudent for ladies...

Close