Fix your savings for a guaranteed rate

If you don’t need immediate access to your money, then a fixed rate bond is a good way to build your savings over time.

Fix your savings for a guaranteed rate

We all have different reasons for putting money aside, from building up a safety net in case something unexpected happens, to supporting major life events such as buying a home.

Finding the right type of savings account is therefore a key decision – choose wisely and it can help you achieve your goals more quickly.

A useful starting point is thinking about how often you need to access your money. Easy access accounts with no restrictions on withdrawals certainly give the most freedom, but may not pay the best rate of interest.

To earn a little more, it’s worth considering a fixed rate bond. These typically pay a higher rate, but in return savers agree to forgo access to their funds for a set period of time. And their deposit has to be made in one lump sum at the start of the investment term.

There are other advantages besides the chance of a better return. Some bonds have an option for receiving interest payments each month instead of annually, which is useful for people looking to supplement their income.

The interest rate also remains fixed, unlike an easy access account where the provider can change it. This helps if interest rates start to fall, but on the flip side you won’t benefit if they increase.

The West Brom offers a range of fixed rate bonds spanning terms from one to five years. The longer you invest, the higher the rate of interest received.

For those looking to maximise their tax-free savings allowance, fixed rate cash ISAs are also available. These allow savers to make withdrawals providing an agreed period of notice is given, however this money cannot be reinvested back into the account at a later date.

To discuss your savings needs visit any West Brom branch or telephone our West Bromwich-based customer services team. Also check out our latest products and savings rates online and read our useful savings guides


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