Savings Watch: FirstSave five-year Fixed-Rate bond

Money growth

FirstSave's five-year Fixed-Rate bond monthly interest 2nd Issue is currently the second best five-year saving bond available, offering a rate of 2.9% AER. The highest is currently Virgin Money's Fixed-Rate E-bond (Issue 43).

To open the account you will need a minimum deposit of £5,000, and this can be done online. If you are thinking about opening this account, make sure you don't need access to your money, as no withdrawals are allowed until the product matures after five years.

But, of course, the advantage of a fixed-rate account is that because you are putting your money into a longer-term investment, you get a better rate than you would on an instant-access account.You also know what return you will get on your cash.

Sitting just behind the First Save bond in the best buy tables on is Shawbrook Bank with its own five-year fixed-rate bond, which offers a rate of 2.75% AER. It can be opened online or by post, with a minimum deposit of £5,000.

For further details of both accounts, see and

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