Cahoot has just launched a new issue of its popular Fixed Rate Bond, Issue 3, paying 3.60% yearly to the 2 July 2013. This internet/phone operated account runs for just over a year and is an alternative to the straightforward one-year bond market. The minimum investment is £25,000, up to £2million but be aware, once deposited there is no access to funds and no top-ups can be made either.

Sylvia Waycot of Moneyfacts said: “The interest paid on this new issue is lower than previously enjoyed; however, it still offers a market leading rate in the short-term fixed market. It is common for this sort of bond to refuse early access to funds, which means you need to be sure you won’t need to access your money once deposited until next summer to get the most from this account.

United National Bank has increased the rate on its 1-Year Fixed Rate Deposit to 3.45% yearly or 3.40% monthly. The minimum investment is £2,000 up to a maximum of £1million with no early access to funds.

Sylvia Waycot of Moneyfacts said: “The increase to interest paid has moved this account up the ladder towards the top paying rates and the additional option of taking interest monthly albeit at a lower rate is sure to be attractive to anyone looking to supplement their income.

If you have £10,000 to £2million spare, then the improved bond from Close Brothers Savings may be of interest. The rate on its 1-Year Fixed Rate Bond, has been increased to 3.45% yearly. There is no early access to funds and no top ups.

Sylvia Waycot of Moneyfacts said: “Even this small movement upwards in the interest paid on this account has increased its positioning in the short term fixed rate market.

Furness Building Society has increased the rates paid on its 1-Year Fixed Rate ISA Bond to 3.25% yearly. The minimum investment in the bond is £1,000 and transfers in are permitted. Early access to funds will require closing the account and you will incur a hefty penalty of 270 days loss of interest.

Sylvia Waycot of Moneyfacts said: “It is good news that this account is now paying more, but before rushing in, do make sure that you won’t need early access to funds as the penalty could outweigh or wipe out the original attraction of a good rate.

Vanquis Bank has adjusted the rate of its popular 5-Year High Yield Fixed Rate Bond downwards to 4.41% yearly or 4.32% monthly. The minimum investment is £1,000, up to £250,000 but in keeping with this style of bond, there is no early access to funds.

Sylvia Waycot of Moneyfacts said: “Despite this reduction in the 5-Year High Yield bond rate to 4.41% it remains within the top five of the long term fixed market.

Even with a reduction in rate, the Halifax four-year bonds, Fixed Saver and Fixed Online Saver are still amongst the higher payers at 4.05% yearly or 4.00% at branches. There is a monthly option available at 3.98% or 3.93% depending on online or branch operation. The minimum investment is £500 up to £5million but be aware if you close this account early the penalty is 320 days loss of interest.

Sylvia Waycot of Moneyfacts said: “These four-year bonds offer a good rate of return compared to similar products, however, the penalty for early closure is steep. Be sure you won’t need early access to funds before investing.

Scottish Building Society has entered the 2-year Fixed Rate Bond market with the launch of the competitive, Scot Bond, which pays 3.85% until 28 April 2014. The bond can be opened in branch or by post with £1,000 up to a maximum of £500,000 with no early access to funds. No withdrawals or top-ups are allowed during the term.

Sylvia Waycot of Moneyfacts said: “This is an exciting new launch from Scottish BS, the bond sits comfortably in the top five of two year bonds.

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