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In the comparison chart below, you will find helpful information on some of the best 2-year bonds currently available. For more information on what we can do or to invest with us contact a member of the team at UK Best Investments for an obligation-free consultation.
Provider | % | Minimum Deposit | Payout Frequency |
 | 5.25 | £5,000 | Monthly, quarterly, annually, or at maturity |
 | 0.85 | £1,000 | None |
 | 0.5 | £1,000 | None |
 | 0.25 | £1.00 | Up to 3 withdrawals, each up to 10% of your initial deposit |
 | 1.10 | £5000 | No Withdrawals |
 | 0.60 | £1.00 | No Withdrawals |
 | 0.20 | £500 | None. Can close the account early or transfer to another ISA but would be charged. |
 | 0.20 | £2,000+ | No Withdrawals |
 | 0.75 | £100 | No Withdrawals |
 | 0.20 | £2000 | None, by closure only. Charges apply |
 | 0.25 | £500 | No Withdrawals |
 | 0.50 | £1.00 | No Withdrawals |
 | 0.40 | £500 | No Withdrawals |
 | 0.15 | £500 | Withdrawals or account closures permitted |
 | 0.75 | £500 | No Withdrawals |
 | 0.75 | £2,000 | No Withdrawals |
 | 0.50 | £1,000 | No Withdrawals |
(Data presented is correct as at 08/09/21)
Two-Year Fixed Rate Bonds: A Brief Introductory Guide
In brief:
- A two-year fixed rate bond is an excellent medium term investment opportunity, with more generous interest than with a one-year fixed rate bond.
- Before investing, it is essential to ensure that you are in a comfortable enough position to forgo access to your money for the full two-year period.
- It is rarely possible to access your capital before the end of the agreed period, without facing heavy penalties and potentially losing some of your funds.
Why Buy Two-Year Fixed Rate Bonds?
Two-year fixed rate bonds represent an appealing investment opportunity for a number of reasons. Firstly, they can offer a more competitive interest rate than a comparable one-year bond. If you can confidently give up access to your investment capital for a relatively short period of time, you could benefit from a much better interest rate than any regular savings account.
The minimum investment amount required to purchase a two-year bond is relatively low, this makes it a flexible and accessible investment opportunity for new and established investors alike.
Although risks are already minimal, they can be lessened by choosing a two-year bond to suit your requirements and risk appetite.
Should I Choose a Longer-Term Bond?
Fixed rate bonds are available over a wide variety of terms. One-year bonds are ideal for those who would prefer not to lock themselves out of their capital for too long, while a two-year bond can offer higher rates of interest for those able to wait a little longer.
In addition, there are also three-year, four-year and five-year fixed rate bonds available for purchase. The longer the term, the more likely it is you will be offered a more generous rate of interest.
Are There Any Risks Involved with Two-Year Bonds?
No investment, including fixed-rate bonds, can be considered 100% safe, but there are steps that can be taken to mitigate risk. By conducting due diligence on the issuer and in particularly their background and experience, risks can be mitigated.
Identify the best and safest two-year bonds on the market and establish your suitability for this type of investment.
For information on any of the above or to discuss the potential benefits of two-year bonds in detail, contact a member of the team at UK Best Investments today.
