Fixed term bonds - Atom, Paragon and Sensible Savings

I'm looking for a fixed term bond and have seen these three banks offering better interest rates than the big high street names.

Does anyone have any experience of any of them or can recommend other banks with half-decent interest rates?

half decent interest rates, your having a laugh. iv"e got various fixed rate bonds and the interest rates are pathetic. hang fire till next month when they might be a small rise in rates. you might as well shove it under the bed for the returns your getting at the moment.

It would help if you told us how much you're looking at putting away

I'm looking for a fixed term bond and have seen these three banks offering better interest rates than the big high street names.

 

Does anyone have any experience of any of them or can recommend other banks with half-decent interest rates?

Since nobody (even Mark Carney) has any idea when interest rates might be increased, any fixed-term bond is a big risk.

You can put 3k in 3yr NS&I bond at 2.2 or Tesco Bank offer a 2yr at 1.6

Since nobody (even Mark Carney) has any idea when interest rates might be increased, any fixed-term bond is a big risk.

Thanks Jeffrey, I've already looked at (and pretty much discounted) standard savings accounts as the interest rates are so low. I've seen a couple of one year fixed rate bonds which I didn't think were too bad as it's only locked away for a year in case the interest rates suddenly rise. I'm just struggling to see what the other options might be at the moment.

---------- Post added 16-10-2017 at 10:36 ----------

You can put 3k in 3yr NS&I bond at 2.2 or Tesco Bank offer a 2yr at 1.6

Thanks WasThatWise, I've already seen the NSI bond but I'm looking to put away quite a bit more than that so I was looking for something with a higher limit.

I'm just struggling to see what the other options might be at the moment.

You are the perfect customer by gravitating towards the products with "savings" printed on the lid

This will cheer the Corbynites up no end. Buy property and rent it out, it's a sure fire winner. Rent coming in every week, and the property rising in value every year, win win.

Angel1.

You are the perfect customer by gravitating towards the products with "savings" printed on the lid

Not at all, so what would you suggest instead?

Not at all, so what would you suggest instead?

The name of the game is to maximise your interest on every penny in every pound. This can only be done by fragmenting your savings into multiple products in a particular order.

Again I don't know what your circumstaces are, but lets assume you've got £10k to put away.

i. Start with current accounts. Yes you read that right! The interest rates they pay on credit balances outperform most savings accounts. Nationwide pays 5% on balances upto £2.5k, Tesco Bank pays 3% on balances upto £6k etc etc.

ii. Look at 'Regular Savings' accounts. These are saving products that are only available via your bank. Essentially these are accounts you drip-feed on a monthly basis. They pay good interest rates so they limit how much you can stash away each month. Nationwide pays 5% on a max £250/month, First Direct pays 5% on max of £300/month etc etc.

iii. Look at fixed-rate savings (as you've already been doing) as your last resort for any remaining cash.

So the name of the game is to 'max out' the accounts that pay the most first, and then work your way down.

And remember interest is now paid out gross because the Tories have given us a personal savings allowance, so we can earn upto £1k in interest tax-free ontop of our personal allowance.

The name of the game is to maximise your interest on every penny in every pound. This can only be done by fragmenting your savings into multiple products in a particular order.

 

Again I don't know what your circumstaces are, but lets assume you've got £10k to put away.

 

i. Start with current accounts. Yes you read that right! The interest rates they pay on credit balances outperform most savings accounts. Nationwide pays 5% on balances upto £2.5k, Tesco Bank pays 3% on balances upto £6k etc etc.

 

ii. Look at 'Regular Savings' accounts. These are saving products that are only available via your bank. Essentially these are accounts you drip-feed on a monthly basis. They pay good interest rates so they limit how much you can stash away each month. Nationwide pays 5% on a max £250/month, First Direct pays 5% on max of £300/month etc etc.

 

iii. Look at fixed-rate savings (as you've already been doing) as your last resort for any remaining cash.

 

So the name of the game is to 'max out' the accounts that pay the most first, and then work your way down.

 

And remember interest is now paid out gross because the Tories have given us a personal savings allowance, so we can earn upto £1k in interest tax-free ontop of our personal allowance.

Or if you *could* risk losing some of your money (it's unlikely if you go with the right types of investments though) then Trust Funds or Unit Trusts are worth looking at. You can invest your money with them and they then buy stocks and shares to meet the expected returns at a level of risk. For example, Orbis Access have a very simple system with just 2 products with one medium risk and one low risk. They have expected rates of return of around 8% per annum which is much higher than you'd get from ANY savings account. Trade off of course is that unlike a savings account your money isn't guarantee so there is element of risk.

If you've got a reasonable amount to invest you might be worth speaking to a financial advisor. Most will charge low enough fees for smaller amounts but to be honest you can probably do a lot of research yourself online now.

Here's a decent site explaining some of the options with the focus on a cautious investor, i.e. one who really can't afford to lose anything https://www.trustnet.com/news/706267/the-best-funds-for-cautious-investors-to-consider-in-2017/

The name of the game is to maximise your interest on every penny in every pound. This can only be done by fragmenting your savings into multiple products in a particular order.

 

Again I don't know what your circumstaces are, but lets assume you've got £10k to put away.

 

i. Start with current accounts. Yes you read that right! The interest rates they pay on credit balances outperform most savings accounts. Nationwide pays 5% on balances upto £2.5k, Tesco Bank pays 3% on balances upto £6k etc etc.

 

ii. Look at 'Regular Savings' accounts. These are saving products that are only available via your bank. Essentially these are accounts you drip-feed on a monthly basis. They pay good interest rates so they limit how much you can stash away each month. Nationwide pays 5% on a max £250/month, First Direct pays 5% on max of £300/month etc etc.

 

iii. Look at fixed-rate savings (as you've already been doing) as your last resort for any remaining cash.

 

So the name of the game is to 'max out' the accounts that pay the most first, and then work your way down.

 

And remember interest is now paid out gross because the Tories have given us a personal savings allowance, so we can earn upto £1k in interest tax-free ontop of our personal allowance.

They all have strings attached. The thing is that you should be able to cover at least inflation rate after tax with no strings attached.