Long-term fixed rate bonds remain the surest way to beat inflation on a large savings pot without risking your hard-earned funds on the stock market. While you currently have to say goodbye to your savings for at least five years to get an inflation-beating return, economic and political uncertainty could make this a great time to seek some fixed bond security.
Such a bond could also be perfect for those with big purchases planned – a wedding or a house deposit, for example. Just remember that you'll rarely be able to withdraw funds before the end of the term, and few bonds allow further additions either, so you'll have to be comfortable with both the level of investment and the term chosen from the outset.
If you're confident you won't need the cash for a number of years and are ready to secure a decent return, it's time to get searching. To help you on your way, here are the current top six long-term bonds that could help you get more from your money.
Bank of London and the Middle East (BLME) takes the top spot with this seven-year deal that pays a market-leading expected profit rate of 2.75% on an investment of at least £10,000. As is common in the sector, early access is not allowed – bear in mind that you will need to open a linked current account for transactional purposes – but the return and security that come with this deal could very well make it worth your while.
In second place sits this internet-operated deal from Ikano Bank, with a rate of 2.70% paid over five years for those who have a minimum of £1,000 to invest, making it the market-leading five-year bond. Once again, there's no option to access your invested funds early, but further additions are permitted for a limited period, offering a measure of flexibility.
Close Brothers Savings completes the top three with this deal that offers a return of 2.70% over five years. It can be opened with £10,000, though once open no further deposits can be made, and interested savers must be willing to lock away their funds for five years, as early access will not be permitted.
BLME does it again with a second account in the chart, this time with its five-year fixed rate bond that pays an expected profit rate of 2.70% to those who have at least £10,000 to set aside. With its other features matching the seven-year offer, this could be a great choice for savers who don't want to fix their savings for more than half a decade.
Securing a place in the top five is Masthaven Bank, with another five-year bond that this time pays 2.69% on a lower minimum investment of £500, which could make it more accessible for some. Additions are permitted from a limited period, but as may be expected, earlier access won't be allowed, with the full five-year term always having to be served.
Bookending the top six is Gatehouse Bank, with its five-year bond paying an expected profit rate of 2.68% on a minimum of £1,000. Available through the Raisin platform, this Sharia'a compliant account allows further additions for five working days from account opening, though withdrawals won't be possible. As an added incentive, saves can earn bonuses depending on how much is invested, starting at £20 for a £10,000 to £19,999 investment and rising to £80 for deposits of £80,000 and over.
Information and rates correct as at: 11.10.2018