Fixed Rate Bonds Survey

Banks and building societies offer Fixed Rate bonds

Money Box surveyed a selection of fixed term savings bonds offered by banks and building societies.

The information below was compiled on 21 June 2002.

Bonds are often available for a limited period only.

Key Features

These bonds are similar to the 'Guaranteed Income Bonds' (GIB's) issued by insurance companies as featured on Money Box on 22 June 2002.

The interest rate is fixed and your capital is guaranteed to be returned at the end of the investment period.

Bank and building society bonds may be more suitable for non taxpayers as interest can be paid gross.

GIB's offered by insurers pay interest after basic rate tax has been deducted. Higher rate tax payers will have to pay the additional tax.

Bank and building society minimum deposits range between £1, £500 and £1,000 whereas insurance 'GIBS' normally require a deposit of £5,000.

All interest rates shown are gross.

Abbey National

Name of Account: Choices Bond
Minimum deposit: £1000
Interest rate: (gross annual p.a)
4 year = 5.40%
3 year = 5.30%
2 year = 5.20%
1 year = 4.80%

Account name: Retirement Income Bond (must be aged over 55)
Minimum deposit: £1,000
Interest rate: 5.45% p.a.
Fixed Term: 4 years

Bristol & West

Name of Account: Easylife 3
Minimum deposit: £1,000
Interest rate: 5.35%
Fixed Term: 3 years

Derbyshire Building Society

Name of Account: Fixed Rate Bond
Minimum deposit: £500
Interest rate: 5.30%
Fixed Term: Until 31 July 2004

Leeds & Holbeck Building Society

Name of Account: Five Year Fixed Rate Bond (Issue 67)
Minimum deposit: £100
Interest rate: 5.55% if interest is paid annually. 5.35 if interest is paid monthly
Term: Until 31 August 2007

Nationwide Building Society

Name of Account: Fixed Rate Bond
Minimum deposit: £1

Interest rate: 5.00%
Term: 2 years

Interest rate: 5.25%
Term: 3 years

Northern Rock

Name of Account: Fixed Rate Bond
Minimum deposit: £500

Interest rate: 4.75%
Term: Until 1 July 2003

Interest rate: 5.20%
Term: Until 1 July 2004

Interest rate: 5.35%
Term: Until 1 July 2005

Woolwich

Account: Fixed Rate Bond
Minimum deposit: £500
Interest rate: 4.50%
Fixed Term: 1 year

Interest rate: 5.00%
Fixed Term: 2 years

Interest rate: 5.25%
Fixed Term: 3 years