Deposit holders looking for a better one-year home for their money will be interested in Canada Life's Guaranteed Security Bond which is offering the highest fixed-rate interest on the market for sums in excess of £50,000.
The bond, which requires a minimum £5,000 savings, pays net returns of 3.75 per cent (gross 4.93 per cent) for amounts of £5,000-£25,000, 4 per cent (gross 5.26 per cent) for sums between £25,000 and £50,000 and 4.25 per cent (gross 5.59 per cent) for sums in excess of £50,000.
The highest gross rates currently on the market for top sums are 5.13 per cent from Equity Bank and 5 per cent from the likes of TSB, Irish Nationwide, BNP and EBS though the qualifying amounts tend to be lower, i.e., £10,000£25,000.
Returns are tax-paid and while you can encash early, you risk a loss since the returns will amount to the realisable value of the underlying assets at the time, net of tax, selling costs and a surrender penalty of 0.2 per cent of the value of the bond per month outstanding to the end of the term. This bond is definitely only for people who know they will not have to touch it before maturity.
