Chelsea Building Society Fixed Rate Bonds

Chelsea Building Society Fixed Rate Bonds Review

See below to compare the latest rates available with Chelsea BS.

Features of the Chelsea fixed rate bonds may be:

• Opportunity to earn Interest on balances from £1
• Savings available for deposits from £1,000 up to £2,000,000
• The option to choose monthly or annual interest payments
• Accounts that may be operated by post, online or in branch with a passbook
• Fixed rate bonds will normally not allow withdrawals without interest penalty

Our comparison service helps you to make an informed decision about which savings products are best for you – check out the other deals available to see what type of fixed rate bond could suit your needs.

As with most bonds you lose access to your money for a fixed period of time, and may end up with less in return if you close them early, it is important to try and get the best deal you can. Therefore shopping around before you take one out is a really wise decision.

What are fixed rate bonds?

Fixed rate bonds are a form of savings account which offer you a guaranteed interest payment over a fixed period of time. The longer the period of time generally the higher the interest payment paid.

Advantages

• The interest rate offered is guaranteed for the term of the bond. This is unlike instant access savings accounts where the interest rate can go down or up at short notice.
• Different banks and building societies will have different views on medium to long term interest rates. If interest rates rise more slowly than expected a fixed rate bond may give you a better return than what you could expect from an instant access account.
• Some fixed rate bonds provide flexibility e.g. 1 withdrawal over the term.
• Fixed rate bonds range from 2 months to 5 years in duration so you can choose a term that suits your circumstances
• Many fixed rate bond providers offer online access so you can see how much interest you are earning.

Disadvantages

• The benefit of enjoying a higher rate of interest must be weighed against tying up your capital for a fixed term. If you need access to your capital before maturity this may not be possible and if it is there may be interest penalties.
• If interest rates rise over the term of the investment you may find the interest rate on your capital is no longer competitive compared to new offerings in the market.
  Many fixed rate bond providers require a high minimum deposit e.g. £5,000