How to decide on the best fixed rate bonds for you
Fixed rate bonds are, and have long been a sensible way to save, providing you can adequately support yourself without the funds held in them. These savings plans have an agreed interest rate for an agreed length of time which means that the return is more or less guaranteed from the beginning.
Fixed rate bonds are a great way to make your savings grow, or just to ensure that you don’t face the urge to delve into savings willy nilly. The important thing is deciding on one of the many fixed rate bonds which best suits you, and which is the most realistic, with the best possible return.
Whilst five year plans have the best interest rates, and thus the best return, five years is a very long time to go without your savings, and it is rare that people can commit to this length of term. Only the very stable or those who are sure of their financial situation could sensibly be advised to opt for a five year account. In addition, some of the very short term plans are offering incredibly competitive rates, which means the difference between one and two year plans is very small, and might not necessarily merit being without access to your money for an additional year.
Whichever plan best seems to suit your particular situation, it is always worth stopping to survey the options available, and for those who have fixed rate bonds reaching maturity, be sure to examine other providers offerings as a consideration before reinvesting.
