Fixed rate bonds remain the best way to secure a guaranteed return, yet in light of the ongoing economic uncertainty, you may be reluctant to tie your money up for too long. That's why a two-year deal could be the perfect compromise.
These accounts can be particularly ideal if you're saving up for something specific – such as a wedding, a new car or a once-in-a-lifetime holiday – and want to be absolutely certain that you won't be tempted to spend the money in the meantime.
They're also perfect if you think rates could rise in the next couple of years and you don't want to keep your money out of arm's reach for too long. After all, there's no telling what will happen to savings rates. So, if you want to secure growth-generating returns without too much commitment, a two-year bond could be just the thing.
These accounts can offer the best of both worlds: a decent rate and the peace of mind in knowing that you'll be able to access your cash in around two years' time. Just bear in mind that you'll rarely be able to make additions after your initial deposit and earlier access usually won't be possible, so you'll need to be comfortable with both your investment and the term.
If this sounds like the kind of short-term bond for you, read on for the best two-year deals currently available that can offer a great rate with minimal commitment.
In first place sits Al Rayan Bank, with a market-leading expected profit rate of 2.32% AER (2.30% gross) for those who have a minimum investment of £1,000 to put away. While you won't be able to access your funds before the end date, it does give you all possible options for managing the account.
OakNorth takes the number-two spot with a 30-month deal that pays a near market-leading rate of 2.31%. It also requires £1,000 to be opened and asks savers to wait a little longer to regain access to their funds, but the rate could well be worth it and the account might work out perfectly for those with longer-term goals.
Completing the top three is OakNorth, this time with its two-year deal that pays 2.30% from a minimum of £1,000. While as usual there's no recourse to access the funds prior to maturity, the near market-leading rate could make this online-only deal an attractive option for many savers.
Next up is Investec Bank plc, with a two-year deal that also pays 2.30%, but savers will require at least £25,000 and be happy to open an Investec easy access account as well. As usual, access is not allowed before the end of the term, but savers will be able to make handy use of the interest every year as this must be transferred away.
In fifth place sits Union Bank of India (UK) Ltd, with an account that pays 2.27% on a minimum deposit of £1,000. Once again there's no early access possible on this branch- and postal-operated deal.
Completing the top six is Secure Trust Bank, which also pays 2.27% on a minimum deposit of £1,000. It's the only account in this top six that allows additions for some time after opening, although early access is as usual not permitted.
Information and rates correct as at: 08.11.2018