Compare Alternative Bonds

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Lloyds TSB 18 Month Tracker Bond

This account is designed for savers who want to ensure their savings rate will keep pace with any changes in the Bank of England base rate.

Savers earn a variable interest rate of 3.30% AER for 18 months. Interest on the account is paid monthly at a rate of 3.25% Gross. This rate tracks at 2.75% above the Bank of England base rate – currently 0.50%. If the Bank of England base rate changes, the Tracker Bond rate of interest will change on the first working day of the following month.

To open the account, you need to have or open a current account or another savings account with Lloyds TSB. The minimum deposit is £2,000. The maximum amount that can be held in this account is £1,000,000, but if you are planning on depositing a large lump sum, remember that only the first £85,000 is protected by the Financial Services Compensation Scheme.

Withdrawals and closures are not permitted during the 18 month term of the account, so you must be certain you won’t need to get your hands on your money before the account matures.

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Kent Reliance 1 Year Tracker Bond

This one year tracker bone guarantees to pay 2.50% above the Bank of England base rate throughout its one year term, giving it a current payable rate of 3.00%.

If you think base rates are going to rise in the next few months, then this account could be a good option as the rate on the account will increase if it does.

Savers can choose whether to receive interest annually or monthly, making it a good option for anyone looking to supplement their income.

There is no minimum age on this account, so it can be opened on behalf of a child. The minimum opening balance is £1,000 and the maximum you can hold in the account is £1 million, but bear in mind that if you do plan to invest a large lump sum, only the first £85,000 is protected by the Financial Services Compensation Scheme.

Once you have opened the account, you cannot make any additional deposits. Withdrawals are allowed, but you will lose 180 days’ interest on the amount withdrawn, so you should make sure you can afford to leave your money untouched for the one year term of the account.

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National Counties BS 1st Issue Tracker Savings Bond

This variable rate account tracks the Bank of England base rate plus another 2.26% for one year, giving a current payable rate of 2.76% before tax.

While this rate is competitive, other one year tracker accounts are available which pay higher rates of interest.

There is also a monthly interest option for savers looking to supplement their income. However, you will need a minimum balance of £5,000 and you will receive interest at a marginally lower rate of 2.73%.

The account can be opened with a minimum investment of £1,000, and the maximum amount you can save is £150,000. Bear in mind, however, that if you do plan to invest a large lump sum, only the first £85,000 will be protected by the Financial Services Compensation Scheme.

Interest rate changes will take place within 30 days of the Bank of England changing the base rate.

You cannot make any withdrawals from this account, so you must be certain that you can afford to leave your money untouched for a year.

Interest is paid on 1st July and at maturity.