Product Spotlight: One-year fixed rate bonds
If you want to make the most of your money without a long-term commitment, here we’ve rounded up the best one-year fixed rate bonds currently available.
• Taking the top spot is Aldermore, with 1 Year Fixed Rate Account paying 1.00% AER on maturity. This purely internet-operated account requires a minimum investment of £1,000 and permits further additions for 14 days from account opening, but withdrawals won’t be possible before the end of the term. A version of the account that pays interest monthly is also available. Find out more or apply online by heading straight to the provider’s website.
• Two accounts pay the next-best rate of 0.85% AER, with Habib Bank Zurich plc’s HBZ Sirat eDeposit paying it as expected profit on maturity. This Sharia-compliant account requires a minimum deposit of £5,000 and accepts further additions within 30 days of account opening, though withdrawals aren’t allowed. The bond must be opened online – click here to apply – before becoming postal-operated. Alternatively, Allica Bank pays the same rate of interest on its Fixed-Term Personal Savings Account (Issue 13), an internet-operated deal that requires a minimum investment of £1,000 and accepts further additions within 14 days.
• In joint-third place are no less than three accounts paying 0.80% AER, with Bank of London and The Middle East (BLME) offering it as expected profit on its one-year Premier Deposit Account. The deal requires a minimum deposit of £1,000 with no further additions or withdrawals accepted, and savers will need to have or open a BLME transfer account to qualify. It can only be applied for online (go to the provider’s website to get started), after which it becomes postal-operated. Meanwhile, Habib Bank Zurich plc pays 0.80% AER on its 12-month HMZ Fixed Rate eDeposit, with all other details mirroring that of its Sharia-compliant account, and Secure Trust Bank pays the same rate on its 1 Year Fixed Rate Bond from a minimum of £1,000.
You can find more of the best one-year bonds on our chart.
Product spotlight: Five-year low-fee remortgages
If you want long-term security with a five-year remortgage but don’t want to pay extortionate fees, here are the best five-year fixed rate remortgages that have product fees of less than £1,000, which makes their total cost lower than some lower-rate but higher-fee counterparts.
• First up within these parameters is NatWest, with a rate of 1.23% (2.7% APRC) that’s fixed to 31 August 2026 before reverting to 3.59% variable for term. It’s available at up to 60% loan-to-value (LTV), and its already low fee of £995 is further offset by the additional incentives of free valuation and legal fees. Overpayments are also permitted, and you can find the same deal through branches of Royal Bank of Scotland, as well as through NatWest Intermediary Solutions by speaking to a broker.
• Next up is HSBC with a rate of 1.24% (2.7% APRC) that’s fixed to 31 August 2026, before reverting to 3.54% variable for the remaining term. It’s available at up to 60% LTV and has a fee of £999, and remortgagors can benefit from an incentive package of free valuation and legal fees. Overpayments are permitted, too. Speak to a broker to find out more.
• Then there’s Barclays Mortgage with the same rate of 1.24% (2.8% APRC) fixed to 31 August 2026, this time with a revert rate of 3.59% variable. It’s available at up to 60% LTV with a £999 fee, and the incentive package for remortgagors includes a free valuation and either free legal fees or £250 cashback, with overpayments allowed. Find out more by speaking to our broker partner.
Find more of the best five-year remortgage deals by heading to our chart.
Fee-free mortgage advice
Get completely free mortgage advice from our preferred mortgage broker Mortgage Advice Bureau, exclusively available to Moneyfacts.co.uk visitors. Just follow this link or call 0808 149 9177.
Aldermore increases rates – can savers expect more rate rises?
Aldermore has increased the rate on its 1 Year Fixed Rate Account from 0.85% to 1.00% gross, seeing it comfortably top the one-year bond chart and marking the first time in nearly six months that savers can get a rate of 1.00% for a short-term commitment. Indeed, the last time such a rate was available was 11 January 2021 on a bond from Ahli United Bank (UK) plc, so it’s hoped that this latest move from Aldermore could lead to a much-needed boost in competition in the savings market, with the potential for other bank and building societies to follow suit and raise their own rates in response.
The best buy-to-let mortgages 2 June 2021
It’s been a busy week in the buy-to-let (BTL) mortgage market, with new launches and rate changes aplenty. Holiday let mortgages in particular remain in huge demand, with Paragon Bank launching such a mortgage this week, with other launches coming from the likes of Barclays Mortgage and Chorley Building Society, while Precise Mortgages and Nottingham Building Society launched mortgages specifically for buy-to-let limited companies. Find out more and see if you can benefit from the best BTL mortgage rates currently available.
How much do you need in your retirement pot to retire well?
A recent survey of 7,000 retirees has estimated that those looking for a comfortable retirement need a pension pot of between £192,000 and £305,000, depending on whether they use pension drawdown or an annuity. In terms of income, this equates to £19,000 per year to live comfortably when retired – while for those who want something more luxurious, they’ll need an income of £31,000, and a pension pot of between £422,140 and £671,000 to accommodate. This means that, if you haven’t yet started planning for retirement, now could be the time to begin!
Moneyfacts.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfacts.co.uk will always be from firstname.lastname@example.org. Be ScamSmart.
Deal of the week
Having the right pet insurance can give you the confidence that your pet’s needs are in good hands, so why not go with a name you can trust? Direct Line has been awarded a five-star rating by Moneyfacts as well as being rated 8.9/10 by its own customers on Reevoo, and it isn’t hard to see why – with cover for pre-existing conditions available, an introductory online discount and direct-to-vet payments, not to mention a 12.5% multi-pet discount and a 24/7 online claims process, a Direct Line policy could have you covered. You can also benefit from free unlimited access to a qualified vet via its online PawSquad service, giving you peace of mind at any time of the day or night. Find out more and get a quote today.
Deal of the week
Credit repair card
If you’ve got bad credit and need to build your score – perhaps you’ve made some questionable financial choices in the past, or have never had any form of credit and therefore have no history – a credit repair card could be ideal. That’s where Ocean Finance can come in. The Ocean Credit Card Mastercard is specifically designed to be used for small purchases that can be paid off each month to boost your score, with the APR of 39.9% making it only ever suitable for low balances. That said, if you prove your credit worthiness you could benefit from up to two optional credit limit increases per year, which could be a great way to build your credit profile. Better yet, you can check your eligibility before applying without it showing up on your credit report.