If you are looking for a good rate of interest, don’t need access to your money and want the reassurance of knowing what your interest rate will be, then a fixed rate bond could be a good choice.
A Fixed Rate Bond is a savings account which lasts for a set period of time – and you have the added reassurance that the interest you earn will not change even if the Bank of England base rate does.
Usually a Fixed Rate Bond only allows one deposit at the time the account is opened so they are aimed at savers with a lump sum to invest. In addition, you won’t typically have access to your cash during the fixed term - although some bonds will allow access with a charge or loss of interest. However, the interest which you will earn with a Fixed Rate Bond tends to be higher than that of accounts where money can be accessed more readily, like an easy access savings account for example.
At the West Brom, we understand that our members have differing needs and requirements. The features and benefits of a Fixed Rate Bond may be suited to one customer, but not necessarily to another.
If you are looking to invest a lump sum and don’t require access to your money for a little while, a Fixed Rate Bond could be for you. What’s more, you can choose to have the interest that you earn with a Fixed Rate Bond paid either annually or monthly.
Once you have deposited your lump sum, you can sit back, relax and watch your savings grow safe in the knowledge that the interest rate will not change at any point during the term of the bond.
If you know that you will need access before the end of the fixed term, then a Fixed Rate Bond may not be the best option for you. In that case, it might be worth considering an easy access account instead where you are able to make withdrawals.
1. You can plan with the certainty that your interest will remain fixed.
2. You are more likely to get a higher rate of interest compared to other savings accounts.
3. You wish to deposit a lump sum and will be happy to watch your savings grow without requiring access to your money.
At the West Brom we have a selection of Fixed Rate Bonds with a range of terms.