Short term investment options 2016 uk
Looking for a bit of extra security when it comes to your cash, but don't want a long-term commitment? That's where a short-term bond could come in.
This kind of account can give decent returns without asking you to lock your money away for too long, the ideal combination given that it's difficult to know what's coming next. Short-term bonds can be perfect if you're planning a big purchase in the next year or so and want the best returns possible, and are even more appropriate if you think rates could rise in the next few years and are reluctant to tie up your money for too long.
Fixed bond rates have been edging up recently, too, which means now could be a great time to consider your options. However, it's important to be aware of the restrictions associated with these kinds of savings accounts.
Most won't let you make further additions, and earlier access if permitted could incur hefty penalties, so you'll need to be happy with both your investment and the term of the bond from the outset. But, if you've got a lump sum to invest and are confident you won't need the cash in the foreseeable future, these accounts could be the ideal solution.
So, to get you started, here are the top six short-term bonds currently on the market, all of which have terms of between 12 and 18 months:. Comfortably taking the top spot is this deal from Al Rayan Bank which pays an expected profit rate of 1.
It doesn't permit further additions or withdrawals, yet it could be a competitive choice for those seeking a short-term home for their funds.
Al Rayan Bank is certainly a force to be reckoned with in the short-term market, with its month bond securing the number two spot by becoming another market-leader for its term. This one pays an expected profit rate of 1. In third place is this bond from Charter Savings Bank, an online-only deal that pays 1. Although the full month term must always be served, it offers the chance for further additions to be made for a limited period, offering some welcome flexibility.
Charter Savings Bank has done it again with a second deal making the charts, this time its one-year bond that pays a fixed rate of 1.
London – SOHN
This internet-operated account again permits further additions, but not withdrawals, which could make the month nature of the account slightly more palatable.
Securing a top-five spot is this deal from BLME which pays an expected profit rate of 1. Hampshire Bank just squeezes into the top six with this one-year bond that pays a rate of 1.
It's a simple, straightforward deal that doesn't permit additions or earlier access, so savers will need to be happy with their investment and term from the outset.
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So, to get you started, here are the top six short-term bonds currently on the market, all of which have terms of between 12 and 18 months: AER Details Al Rayan Bank Fixed Term Deposit 1.
Where do we put our £20, deposit for the best one year return? - Telegraph
AER Details Charter Savings Bank Fixed Rate Bond 1. AER Details Bank of London and the Middle East BLME Premier Deposit Account 1. AER Details Hampshire Trust Bank 1 Year Bond Issue 14 1. Moneyfacts House, Thorpe Road, Norwich NR1 1BJ. Authorised and Regulated by the Financial Conduct Authority. Shown on the Financial Services Register www.
Al Rayan Bank Fixed Term Deposit.
'I have £k in cash and a three month time frame: how do I net the greatest return?'
Charter Savings Bank Fixed Rate Bond. Bank of London and the Middle East BLME Premier Deposit Account. Hampshire Trust Bank 1 Year Bond Issue