Written by Karen Bryan
If you’re looking for a long term fixed rate savings account, Secure Trust Bank is offering 4.3% on its Fixed Rate Bond 4 Year Term (series 5). This is one of the highest rates currently available on 4 year UK bonds. You’d better act quickly as the bond is due to close on 31 October 2011. You can open the account online with a minimum investment of £1000 and a maximum of £1,000,000 for personal account holders.
Interest is paid annually on 31 December 2011 into a bank account of your choice, so this bond is best suited to savers who are looking for a fixed annual income.
You need to be aware that you can’t make any withdrawals until the end of the term, which is at the end of the calendar month following the fourth anniversary date. So don’t tie up any money that you may need access to in a hurry.
Secure Bank Trust is covered by the Financial Services Compensation Scheme where up to £85,000 of savings are guaranteed for any single depositor.
With uncertainty over when interest rates will increase; there’s some talk it may not be until 2014 and this week even the possibility of rate decrease was mooted, it makes sense to have some financial products in your portfolio offering a guaranteed return. It’s hard to plan for tomorrow with high inflation, low interest rates and a tumbling stock market. However you can’t just sit on your hands, you need to take some action to try to preserve the value of your savings and I reckon that having some of your savings in fixed interest rate accounts can be a good idea.
Update 31 October 2011 – The 4 year fixed rate bonds have been temporarily withdrawn from sale due to high demand.
Update 7 December 2011 – The Fixed Rate Bond 4 Year Term (Series 7) is currently paying 4.20%.
Update 10 February 2012 – The fixed rate bonds have been temporarily withdrawn from sale due to high demand.
Upadate 12 July 2012 – Secure Trust Bank’s fixed rate bonds are back at or near the top of the longer term savings accounts best buys. The following three accounts are due to close on 31 July 2012 (depending on demand):
- 2 Year Term (Series 3) – 3.76%
- 3 Year Term (Series 5) – 4.01%
- 4 Year Term (Series 9) – 4.25%