Following on from last months article about some of the best deposit rates available I thought I would focus on fixed rate bonds this month.
As with many things if you can afford to commit to something for the longer term then you can often access the best deals.
if you can tuck the money away for five years then the Kent Reliance Building Society are offering a 5 year fixed rate at 4.7% gross. Birmingham Midshires have a two year fixed rate of 4.05% gross. If these seem like too long then you can opt for a one year fixed rate with the AA. Their bond offering is currently paying 3.6%.
Whilst these aren't inflation busting figures it is important to make sure that your money is working as hard for you as it can. It is also important to remember that these rates are gross so taxpayers will pay tax on their interest. You must also make sure that you don't break that all-important £85,000 limit with any institution in order to remain protected by the Financial Services Compensation Scheme.