Savings bonds

Savings bonds offer a safe way of investing your money and are popular because they tend to offer a high rate of interest for the term of the bond.

There is a massive variety of savings bonds available to suit all types of saver and attitude towards investment risk. Savings bonds are for medium to long term investments.

One disadvantage to a savings bond is that access to your funds can be limited and penalties can be applied if the saver does not abide by the rules.

This means that it is vital to check the terms and conditions before you sign up to a savings bond to ensure that it fits in with your requirements. It makes sense to compare different bonds to find the right one for you. Another important factor to consider is that with many savings bonds you cannot add to the original investment so you need to have the funds that you want to invest in place before you open a savings bond.

	The best savings bonds on the market Savings bonds are a great way of maximising the rate you can get on your savings in a period of low interest rates. However, there are pitfalls, as Kate Saines explains.
	Monmouthshire BS launches two new savings bonds The Monmouthshire Building Society has launched two new savings bonds. Its one-year bond pays 3.10 per cent and its two-year bond pays 3.25 per cent.
	Santander release savings bonds paying up to 3.70% Santander has launched a tracker bond and a fixed rate bond that pay up to 3.70 per cent gross AER.
	Santander releases new fixed rate and tracker savings bonds Santander has launched two new fixed rate savings bonds that pay up to 3.70% interest. They have also released a tracker bond that offers base rate plus 2.70%.
	Monmouthshire BS launches two fixed rate savings bonds Monmouthshire Building Society has announced the launch of two new corporate savings bonds, one with a six month term and another with a term of one year.