Investors looking for great fixed-rate bond deals have seen the benefits of a battle between high st...
Investors looking for great fixed-rate bond deals have seen the benefits of a battle between high street banks over the last week as the top four firms now offer rates of between 4% and 4.75% gross.
Capital One Bank, Halifax, Northern Rock and Yorkshire Building Society issued competitive new fixed-rate deals in quick succession but the winner seems to have entered the race only this morning with Yorkshire Bank's offering of 4.5% gross interest on a 2-year fixed-rate deal and minimum investment of £100.
Figures presented by Chase de Vere, the IFA firm, indicated until this morning that Northern Rock was offering the best deal, as it offered a minimum return of 4.4% on a one year bond with minimum investment of £500.
Yorkshire Bank, however, has just today (Friday 22nd) added 2-year and 3-year fixed rate deals to the list, offering 4.5% and 4.65% gross on a minimum investment of £100.
It was Capital One who started the battle on Tuesday 12th August, launching several new fixed-rate deals which offered at least 4% gross interest on minimum investment of £10,000, up to 4.65% on a 5-year deal at min invest of £5,000.
Halifax came back several hours later, offering 4.35% on a 1-year deal with min invest of £1,000, up to 4.55% on a 3-year deal for min invest of £1,000.
Northern Rock then offered 4.4% on a 1-year deal and minimum investment of £500, up to 4.55% on the 3-year, and again with minimum invest of £500.
Both Halifax and Capital One have both tried to pull their deals back as Halifax increased its rates again and offered between 4.41% on a 1-year and 4.56% on the 3-year, at minimum investment of £1,000.
Capital One is offering the highest interest rate of all three banks, as its 5-year fixed rate bond deal now offers 4.75% but still carries minimum investment of £5,000.
Tables of the best deals are as follows:
Yorkshire Building Society:
|Term||New Gross %||Minimum|
New Gross %
New Gross %
What made financial headlines over the weekend?
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch