New range offers returns of up to 3.52% AER.
Secure Trust Bank has launched four new fixed rate bonds, which have stormed the best buy tables.
Savers can choose from a two-year fixed rate paying 2.36%, a four-year fixed rate paying 3.01%, a five-year fixed rate paying 3.22% or a seven-year fixed rate paying 3.52%.
Each of the accounts can be opened online with a minimum deposit of £1,000 and managed over the phone or by post.
As is common with fixed rate deals, you won’t be able to access your money until maturity, but further additions can be made while the respective issue remains open.
Storming the best buys
The new range from Secure Trust has shaken up the best buy tables.
You can see how the new rates stack up for each type of bond below.
Best two-year fixed rate bonds
|
Account |
Term |
Rate |
Minimum deposit |
|
Two years |
2.75% |
£1,000 |
|
|
Secure Trust Bank Fixed Rate Bond Two-Year Term (Series 6) |
30.09.16 |
2.36% |
£1,000 |
|
Islamic Bank of Britain Fixed Term Deposit* |
Two years |
2.30% |
£1,000 |
^Lower level of FSCS protection
*Anticipated profit rate
Best four-year fixed rate bonds
|
Account |
Term |
Rate |
Minimum deposit |
|
Secure Trust Bank Fixed Rate Bond Four-Year Term (Series 14) |
30.09.18 |
3.01% |
£1,000 |
|
Four years |
2.96% |
£1,000 |
|
|
Shawbrook Bank Four-Year Fixed Rate Bond Issue 7 |
Four years |
2.85% |
£5,000 |
Best five-year fixed rate bonds
|
Account |
Term |
Rate |
Minimum deposit |
|
Five years |
4% |
£1,000 |
|
|
Secure Trust Bank Fixed Rate Bond Five-Year Term (Series 11) |
30.09.19 |
3.22% |
£1,000 |
|
Five years |
3.21% |
£1,000 |
^Lower level of FSCS protection
Best seven-year fixed rate bonds
|
Account |
Term |
Rate |
Minimum deposit |
|
Secure Trust Bank Fixed Rate Bond Seven- Year Term (Series 11) |
30.09.21 |
3.52% |
£1,000 |
|
FirstSave Seven-Year Fixed Rate Bond 1st Issue |
Seven years |
3.50% |
£1,000 |
As you can see Secure Trust offers the best deals across four- and seven-year fixed rate bonds.
However, when it comes to two-and five-year fixed rate deals you can get a much better return with a Castle Trust Fortress Bond. The Castle Trust bonds pay either 2.75% or 4% depending on how long you're willing to lock your money away.
However, these aren't bonds in a traditional sense; they are technically an investment, which is why you would get a lower level of protection from the Financial Services Compensation Scheme.
Read Earn top rates on your savings with Castle Trust Fortress Bonds for more.
Locking up savings
With a fixed rate bond you can get a decent rate on your cash in return for giving up access. In general the longer you are willing to lock up your cash, the better the rate.
However, you should consider if you could manage without your savings and whether the rate will remain competitive.
The Bank of England Base Rate (currently 0.5%) is expected to slowly rise from next year and saving rates are expected to follow.
So locking into a longer lasting deal of four, five or seven years could be a bit of a gamble.
If you don’t want to take the risk, a shorter one-, two- or even three-year bond could help you to make the most of your cash without trapping it in an uncompetitive deal.