West Bromwich Building Society has launched two new top-paying savings bonds, offering attractive deals for savers who wish to lock their money away for two or three years.
The two-year fixed-rate bond from West Bromwich offers a rate of 4.15% AER, fixed until 30 June 2012. Meanwhile, the three-year deal comes with a rate of 4.65% AER, fixed until 30 June 2013.
Fixed-rate savings bonds
However, both of West Brom’s savings bonds require customers to make a minimum initial investment of £5,000. Furthermore, once a customer has made their first deposit into the building society’s two- or three-year bond, no further payments into the accounts are permitted.
Nor do the fixed-rate savings bonds from West Bromwich permit withdrawals during the term of the accounts.
This means anyone who might need access to their money during the next two or three years might prefer to shop around for a different type of savings deal.
Find the best savings account for you
Which? savings expert Rebecca Fearnley said: ‘The new fixed-rate savings bonds from West Bromwich Building Society offer a good deal if you’re happy to tie your money up for two or three years.
‘However, while these deals offer you the certainty of a guaranteed return, it’s also worth remembering that if you take out one of these accounts and interest rates start to rise, you won’t be able to take advantage of the better savings rates that might come along.
‘In addition, don’t forget that going for a fixed-rate savings deal means locking away your cash – in this case, for up to three years. If you’re not sure you can give up access to your money, consider whether an instant access savings account might be a better fit for you.’
Don’t forget: you can use our independent Which? reviews to compare Best Rate fixed-rate savings accounts, easy-access savings accounts and Best Rate cash Isas.
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