In these uncertain economic times, it can be hard to find an investment that you are comfortable with. Many investments can carry certain amounts of risk with them and there is the uncertainty of whether you will get back everything you have put in. However, there is a potential solution to this problem and it comes in the form of fixed rate bonds.

Whereas investments like equities and property cannot guarantee full returns on your capital, fixed rate bonds can. If you are happy to put your money away and leave it untouched for a number of years, this could be the right investment for you. Bear in mind, fixed rate bonds will require a lump sum investment, but this often works out for the best because it maximises the interest you can receive.

If you do your research you will find unlike the average savings account, which is offering around three per cent in interest, the average fixed rate bond has an interest rate closer to five per cent. And let’s not forget there is also the guarantee that this will remain the case for a set period of time until the account reaches maturity as it is not affected by changes in the base rate.

You can choose to receive your interest earnings either monthly, annually or when the bond reaches maturity, so you could have a nice lump sum at the end of the investment.

However, it has to be said that a fixed rate bond can have some drawbacks. Unlike a savings account or cash ISA where you can withdraw and transfer money whenever you like, with a fixed rate bond there are more restrictions. If you decide to put your money away for say five years, it is best to leave it untouched; otherwise you could incur withdrawal charges or even lose part of your initial investment if you withdraw your money before the bond has reached maturity.

With so many fixed rate bonds to choose between, it is a good idea to shop around for the best deal – You will also need to decide the length of the bond. In this case you are not limited in your choices, you could put your money in a 3 or 6 month bond if you are looking to invest in the short-term, or if you are thinking more long-term a 5 or 6 year bond could suit you.

To get a better insight in to what is available, check out some comparison sites like www.fairinvestment.co.uk and www.moneyfacts.co.uk – where you can compare a wide selection of fixed rate bonds and find the right deal for you.

A lender has launched a new fixed bonds product.

Anyone thinking about taking out Skipton Building Society fixed rate bonds may be interested in a savings account now being offered by the financier.

The lender has announced that it is to launch a new fixed rate bonds deal called the 1 Year E-Bond Issue 2 offering a rate of 3.15 per cent, a figure which may appeal to those wishing to make the most of their money following the recession.

This product has been designed to supersede the company’s Limited Edition 1 Year E-Bond and, like its predecessor, gives savers the opportunity to store between £500 and £1,000,000 in the account.

Kris Brewster, head of products at Skipton, commented that this previous package had proved “incredibly popular”, but now needs to be replaced due to its “limited tranche available” to consumers.

This comes after the financier last week announced the launch of a new range of ISAs, including one and five-year products.

Meanwhile, Norwich and Peterborough Building Society has announced the launch of a new savings account.

This development – which was revealed today (November 12th) – may be of note to anyone who has been looking to compare savings on products such as fixed bonds in the recent past, as the financier’s fourth version of its E-saver package has a variable interest rate of 2.80 per cent.

In addition, the lender is also offering a gross annual equivalent bonus of 1.60 per cent, which will be awarded to the customer on the first anniversary of the deal being taken out.

Gary Lacey, savings product manager at Norwich and Peterborough, commented the product represents a “great savings account for people who are looking to make their money work hard for them”.

Meanwhile, the deal may be of particular interest to older people, as Ed Bowsher of Lovemoney.com believes this cross-section of society will curb their spending habits before other groups.

Find More Isa Savings Accounts Articles

A fixed rate ISA is an Individual Savings Account that gives the holder a set amount of interest that doesn’t change. This means that you can stay in control of your savings and be safe in the knowledge that you are going to be getting the best deal possible when it comes to take free interest rates. Currently in the United Kingdom most banks will have some sort of deal offering a Fixed Rate ISA account that anyone can open. Let’s take a brief look at some of the Fixed Rate ISA accounts.

One that you might want to take a look at is the Fixed Rate ISA from Alliance Leicester. They offer several different fixed rate ISA plans for their customers. The first that you may wish to take a look at is the 2 year Fixed ISA. This ISA allows you to earn a fixed interest rate of 3.50% gross PA. The second plan that they offer is the 1 year Fixed ISA. This allows holders to with balances above nine thousand pounds to earn a fixed interest of 2.75% PA.

Another that you might want to consider is the Fixed Rate ISA from Lloyd’s TSB. This allows account holders with an overall balance of over thirty thousand pounds to earn a fixed interest rate of 3.30% tax free. This is for their two year fixed rate ISA. You can also transfer any current ISA’s to this account in order to maximise your interest. Opening a fixed rate ISA with Lloyd’s TSB couldn’t be easier, you can even apply online.

Santander also offer a very attractive deal when it comes to fixed rate ISA’s. Again, it is tax free because it is an ISA, and this means that any interest that you accumulate is yours to keep. They offer a fixed rate of 2.00% AER that also has a variable bonus too. You can save from as little as one pound, so it is a great place for anybody to start their savings account.

The three banks that are mentioned above are just three out of hundreds of banks that offer different fixed rate ISA’s. it is totally up to you which plan is right for you, it will be different for everyone. You should do some research and shop around to find a fixed rate ISA that you feel meets all of your requirements.

As well as this, you can do some research online. There are many finance websites that will provide you with information on the different fixed rate ISA’s that are available for you. It is very important to do thorough research about all of the different plans that are available to you if you want to get the best deal possible.

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