Exclusive: Fix your savings for 9 months at 2.00% AER with Bank of Cyprus

Many savers crave the security of a fixed rate bond, but they’re unable to commit to tying up their funds for a year or more.

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If this applies to you, the Bank of Cyprus 9-month bond paying 2.00% AER could be right up your street.

And it’s exclusive to MoneySuperMarket – so you’re in the right place.

The basics

The Bank of Cyprus 9-month bond pays a competitive 2.00% AER fixed for nine months. The rate increases to 2.02% AER if you’ve been a customer of the bank for six months or more.

It is the market leading rate for this length of term.

The account can be opened online, with the 2.00% AER rate being exclusive to MoneySuperMarket.

You can open the account with £1,000 or more but you will not be able to make further deposits during the nine-month term or make withdrawals.
 
Bank of Cyprus is a UK-based bank which means the first £85,000 of your cash will be protected under the Financial Services Compensation Scheme (FSCS).

Be aware this limit will be changing to £75,000 from the beginning of 2016 – you can read more about this here (discussions are taking place regarding those already in fixed term deals that straddle the end of 2015).

Is this for you?

The Bank of Cyprus 9-month bond is a great option if you want to lock in to a fixed rate of interest, but don’t want to tie up your funds for too long.

You’ll need to be able to leave your money untouched for nine months and have at least £1,000 to put away.

What makes it special?

Generally speaking, fixed rate bonds offer higher rates of interest than easy access accounts – plus, the rate is fixed, not variable. But the majority of fixed rate bonds are for 12 months or more, and not everyone can commit to locking away their funds for that length of time.

The Bank of Cyprus 9-month bond therefore offers a compromise to savers who are seeking a more competitive home for their money, but know they will need to access those funds within 12 months.

Watch out for

You won’t be able to access your money for the duration of the nine-month term or make further deposits, so it’s no good if you want to save on a regular basis.

Once the nine months are up, your money will be moved to an equivalent bond unless you contact the bank to say otherwise – at the very latest, you must do this the day before your bond matures.

If you don’t want your funds to be reinvested, they will be transferred to your chosen bank account.

What else is worth a look?

If you’re prepared to lock away your cash for longer than nine months, there are better rates of interest to be found.

Vanquis Bank, for example, pays 2.26% fixed for two years or 2.51% fixed for three years, with a minimum deposit requirement of £1,000.

But you could also consider putting some of your cash in a current account. You’ll be able to access your money with ease and the interest rates are even more competitive.

The TSB Current Account Plus, for example, pays 5.00% AER (variable) on balances up to £2,000. You’ll need to pay in at least £500 a month and have at least three direct debits on the account. And if you apply for your account before July 31, you’ll receive £100 cashback.

Alternatively, the Santander 123 current account pays 3.00% AER (variable) on balances between £3,000 and £20,000 (or 1.00% on balances above £1,000 and 2.00% on balances above £2,000). You’ll also earn cashback of up to 3.00% on some of your household bills.

To qualify you’ll need to pay in £500 or more a month, have at least two direct debits on the account and pay a £2 monthly fee.

 

Please note: any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.

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