Bonds or Term savings accounts are high interest savings accounts offering the most competitive interest rates. These accounts require money to be tied up for a specific period of time. Once a bond has been opened you are not usually allowed to add to your initial deposit. The money in the account is tied up for a specific length of time, usually 1 to 5 years. Most Bonds or Term savings accounts Providers do not permit any type of withdrawal before the maturity date. If withdrawals are allowed then a penalty will normally be incurred. The interest rate on most accounts is fixed from opening the account until the maturity date. Click here to compare bond or term savings accounts.

Pros of Bonds or Term Saving Accounts:

Rate of interest paid on bonds accounts are usually the best on the market.
Excellent accounts for people who have spare money and can afford to tie the money up for a fixed length of time.

Cons of Bonds or Term Saving Accounts:

Interest rates paid on bonds are fixed for the length of the bonds, or if not fixed predetermined by the bank or building society. Therefore if the Bank of England base rate interest increases considerably within that time the rate offered on these accounts will not change to reflect this.
Access to money at short notice is not permitted in most cases.
Most Bonds or Term savings accounts Providers do not permit further deposits once the initial deposit has been made.

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