Secure Trust Bank launches four leading fixed rate bonds


Updated on 01 October 2014 | 4 Comments

New range offers returns of up to 3.52% AER.

Secure Trust Bank has launched four new fixed rate bonds, which have stormed the best buy tables.

Savers can choose from a two-year fixed rate paying 2.36%, a four-year fixed rate paying 3.01%, a five-year fixed rate paying 3.22% or a seven-year fixed rate paying 3.52%.

Each of the accounts can be opened online with a minimum deposit of £1,000 and managed over the phone or by post.

As is common with fixed rate deals, you won’t be able to access your money until maturity, but further additions can be made while the respective issue remains open.

Storming the best buys

The new range from Secure Trust has shaken up the best buy tables.

You can see how the new rates stack up for each type of bond below.

Best two-year fixed rate bonds

Account

Term

Rate

Minimum deposit

Castle Trust Two-Year Fortress Bond^

Two years

2.75%

£1,000

Secure Trust Bank Fixed Rate Bond Two-Year Term (Series 6)

30.09.16

2.36%

£1,000

Islamic Bank of Britain Fixed Term Deposit*

Two years

2.30%

£1,000

^Lower level of FSCS protection

*Anticipated profit rate

Best four-year fixed rate bonds

Account

Term

Rate

Minimum deposit

Secure Trust Bank Fixed Rate Bond Four-Year Term (Series 14)

30.09.18

3.01%

£1,000

Vanquis Bank High Yield

Four years

2.96%

£1,000

Shawbrook Bank Four-Year Fixed Rate Bond Issue 7

Four years

2.85%

£5,000

Best five-year fixed rate bonds

Account

Term

Rate

Minimum deposit

Castle Trust Five-Year Fortress Bond^

Five years

4%

£1,000

Secure Trust Bank Fixed Rate Bond Five-Year Term (Series 11)

30.09.19

3.22%

£1,000

Vanquis Bank High Yield

Five years

3.21%

£1,000

^Lower level of FSCS protection

Best seven-year fixed rate bonds

Account

Term

Rate

Minimum deposit

Secure Trust Bank Fixed Rate Bond Seven- Year Term (Series 11)

30.09.21

3.52%

£1,000

FirstSave Seven-Year Fixed Rate Bond 1st Issue

Seven years

3.50%

£1,000

As you can see Secure Trust offers the best deals across four- and seven-year fixed rate bonds.

However, when it comes to two-and five-year fixed rate deals you can get a much better return with a Castle Trust Fortress BondThe Castle Trust bonds pay either 2.75% or 4% depending on how long you're willing to lock your money away.

However, these aren't bonds in a traditional sense; they are technically an investment, which is why you would get a lower level of protection from the Financial Services Compensation Scheme.

Read Earn top rates on your savings with Castle Trust Fortress Bonds for more.

Locking up savings

With a fixed rate bond you can get a decent rate on your cash in return for giving up access. In general the longer you are willing to lock up your cash, the better the rate.

However, you should consider if you could manage without your savings and whether the rate will remain competitive.

The Bank of England Base Rate (currently 0.5%) is expected to slowly rise from next year and saving rates are expected to follow.

So locking into a longer lasting deal of four, five or seven years could be a bit of a gamble.

If you don’t want to take the risk, a shorter one-, two- or even three-year bond could help you to make the most of your cash without trapping it in an uncompetitive deal.

More on savings:

The best fixed rate bonds

The best instant access savings accounts

Where to earn most interest on your cash

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