Savers have to act fast to get the best bonds and ISAs

Sunday, 06 December 2009 00:42

Some of the best building society and bank savings accounts disappear in a flash, leaving savers with different choices at every turn. Fixed-rate bonds and ISAs have been worst hit, as offers are quickly fully subscribed and withdrawn.

It may be that savings rates have hit a temporary peak as banks try to assess which way the markets will turn in the next few months. Not all is lost, though, and there are one or two deals to be had.

Chelsea Building Society has new issue of Autumn Bonds, in which savers can invest from £1,000 to £500,000 in the bonds, which can be operated by post or in a branch. The 90-day penalty version has an interest rate of 3 per cent for one year, or 3.6 per cent for two years; the non-penalty version has 2.8 per cent for one year.

Jenny Hudd, of Chelsea Building Society explained the rapid changes: “We continually evolve our bond range and this range provides a choice for our members. The provide a balance between interest and access – for life’s unexpected events.”

Longer-term savers could look at the three-year deals on offer from Co-operative bank and Britannia (now part of the Co-op). Savers can get five per cent on investments from £5,000 to £1 million into their bond. There is a 30-day window at the end of each 12-month period in which savers can access their funds, but even then a penalty will apply.

Northern Rock has two issues of a stepped fixed-rate ISA. The first one matures in December 2012 and pays 3.75 per cent in year one, 4 per cent in year two and 4.5 per cent in year three. The other matures in 2014 and pays the same rates in the first three years, then 4.75 per cent in year four and 5 per cent in year five. Upwards of £500 can be invested.

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