Barclays five-year fixed rate bond pays up to 4.75%

With demand growing for savings that offer guarantees and security, Barclays has launched a ‘top of class' five-year fixed rate bond paying up to 4.75 per cent.

Barclays five-year bond pays 4.75 per cent gross p.a/AER on balances over £50,000 with a maximum investment of £1,000,000. For balances under £50,000, Barclays is paying 4.25 per cent gross P.A/AER with a minimum investment of only £500. Barclays five-year fixed term bond offers the flexibility of three different interest payments. Savers can have interest payments made monthly, annually or have an end of term option with interest compounded annually. This is one of the few five-year bonds on the High Street offering an ‘interest paid on interest' option.

Andy Gray, Barclays Head of Savings, said: "More savers are turning to fixed rate bonds that offer a guaranteed rate of return as a safe way to plan for the future. With the base rate at 0.50 per cent and no certainty on when it will change or how soon, savvy customers can enjoy a ‘best of class' interest rate which is eight to nine times more than the base rate.

"Our five-year bond will appeal to customers who can lock their savings away for five years and, from just £500, is accessible to nearly everyone. Customers who save for longer by rolling over their interest are also rewarded with more income at the end of term."

New customers can open their fixed rate bond at a branch, while existing customers can choose from a branch, over the phone or the internet if registered for Online Banking. (The online application only offers the monthly interest payment option.)

Barclays continues to offer a one-year bond which pays 2.00 per cent AER from £500, and a three-year fixed rate bond paying 3.00 per cent from £500 and 3.50 per cent from £50,000.