Earn over 5% on a five-year bond

By SYLVIA MORRIS, THIS IS MONEY AND DAILY MAIL SAVINGS EXPERT
Updated: 04:42 EST, 2 September 2009

Savers willing to tie up their money can earn top rates of more than 5% before tax on new fixed-rate bonds.

Earner: New five-year bonds are offering top rates

Birmingham Midshires, part of Halifax Bank of Scotland (HBOS), now pays 4.12% after tax (5.15% before) on £1 or more, but only if you are willing to tie up your money for five years.

On shorter-term deals, the new one-year Summer Bond from Chelsea BS pays 3.04% (3.8 pc) on a minimum £1,000.

The rate puts it among the top payers which include West Bromwich BS internet-based account at 3.12pc (3.9%), Post Office at 3.08% (3.85%) and Northern Rock at 3 pc (3.75%), minimum £1.

The Chelsea bond is available through the post or its branches.

Santander group, which includes Abbey, Bradford & Bingley and Alliance & Leicester, has launched a new two-year bond paying 3.36% (4.2pc), but on a higher minimum of £10,000.

Other good two-year deals include: West Bromwich at 3.56% (4.45%), minimum £5,000, and AA Savings, part of HBOS, at 3.48% (4.35%) on £1 or more, both available over the internet only.

Kent Reliance BS, AA Savings and Birmingham Midshires all pay 3.4% (4.25%) on their postal accounts, on minimums of between £1 and £500.

Three-year deals include 3.8% (4.75%) from West Bromwich's internet account.