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6 of the best long-term bonds
Category: Savings
16/08/2018

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 pot for at least five years to get an inflation-beating return, economic and political uncertainty might make it 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.

AERDetails
Secure Trust Bank
Secure Trust Bank
7 Year Fixed Rate Bond
(16.9.25)
Go to Site
2.76%
  • £1,000 minimum deposit
  • Rate fixed until 16.09.2025
  • Additions of at least £1,000 permitted while the issue remains open
  • No withdrawals or early access allowed
  • Must be opened online, but can then be managed over the phone as well
  • Interest paid yearly

Secure Trust Bank takes the top spot with this deal that pays the market-leading return of 2.76% over seven years. It can be opened with £1,000 and allows additions until the issue gets replaced, offering some flexibility. However, interested savers must be willing to lock away their funds until 16 September 2025, as early access will not be permitted.

AERDetails
PCF Bank
PCF Bank
7 Year Term Deposit Issue 8
2.75%
  • £1,000 minimum deposit
  • Rate fixed for seven years
  • Additions allowed for 14 days after account opening
  • No withdrawals or early access allowed
  • Can be opened online or by post, but then managed by phone as well
  • Interest paid on its anniversary and must be paid away

In second place sits PCF Bank, with a near market-leading rate of 2.75% paid over seven years for those who have a minimum of £1,000 to invest. Once again, there's no option to access your invested funds early, but as interest must be paid away you would see this appear in your current account once a year.

AERDetails
BLME
Bank of London and the Middle East
Premier Deposit Account
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2.75%
(expected profit rate)
  • £10,000 minimum deposit
  • Rate fixed for seven years
  • No additions, withdrawals or early access allowed
  • Linked product: must have or open a BLME current account first
  • Internet-operated
  • Interest paid on its anniversary and must be paid away
  • Sharia'a compliant account

Bank of London and the Middle East (BLME) completes the top three with a seven-year deal that pays an expected profit rate of 2.75% on an investment of at least £10,000. As usual, early access is not allowed, and you will need to open a linked current account for access, but the return and security that come with this deal could very well make it worth your while.

AERDetails
Secure Trust Bank
Secure Trust Bank
6 Year Fixed Rate Bond
(16.9.24)
Go to Site
2.71%
  • £1,000 minimum deposit
  • Rate fixed until 16.09.2024
  • Additions of at least £1,000 permitted while the issue remains open
  • No withdrawals or early access allowed
  • Must be opened online, but can then be managed over the phone as well
  • Interest paid yearly

Next up is Secure Trust Bank again, this time with the market-leading six-year bond, which pays 2.71% on a minimum of £1,000. All its other features mirror the seven-year version, making this an appealing alternative for those wanting an inflation-beating return without setting aside their savings for seven years.

AERDetails
BLME
Bank of London and the Middle East
Premier Deposit Account
Go to Site
2.70%
(expected profit rate)
  • £10,000 minimum deposit
  • Rate fixed for five years
  • No additions, withdrawals or early access allowed
  • Linked product: must have or open a BLME current account first
  • Internet-operated
  • Interest paid on its anniversary and must be paid away
  • Sharia'a compliant account

BLME also manages to get another account in the chart, this time with the market-leading five-year fixed rate bond, which pays an expected profit rate of 2.70% over its term for 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.

AERDetails
Secure Trust Bank
Secure Trust Bank
5 Year Fixed Rate Bond
(15.9.23)
Go to Site
2.69%
  • £1,000 minimum deposit
  • Rate fixed until 15.09.2023
  • Additions of at least £1,000 permitted while the issue remains open
  • No withdrawals or early access allowed
  • Must be opened online, but can then be managed over the phone as well
  • Interest paid yearly

Bookending the top six is Secure Trust Bank, with its five-year bond paying a near market-leading rate of 2.69% on a minimum of £1,000, whereby further additions are permitted for some time. Being still inflation-beating, this provides a welcome alternative for those who may not have £10,000 or more to set aside.

Information and rates correct as at: 16.08.2018

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.