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Barclays’ new savings bonds pay up to 5.25%

If you’re comfortable locking up your cash for several years, you could get a meaty rate of interest with Barclays’ new savings bonds.

Barclays (www.barclays.co.uk) has a new range of savings bonds. The five-year fixed-rate bond it’s best deal, offering savers 5.25% interest on balances from £500 to £1million.

Interest can be taken monthly, annually or at the end of the term and no withdrawals or additional deposits can be made during the term.

This account is beaten in the best-buy tables only by niche savings provider Aldermore, and Yorkshire Building Society, whose five-year fixed-rate bonds pay 5.4% and 5.3% respectively.

Andy Gray, head of mortgages and savings at Barclays, said: “With the base rate still at an all-time low, savers are looking for risk-free ways to grow their capital.”

He said the new fixed-rate bonds allow savers to secure a high interest rate for as long as they are happy to lock up their cash.

Barclays is also offering a two-year fixed-rate bond, paying 3.75% on balances from £500 to £39,999 and 4.25% on balances from £40,000 to £1million.

Plus, for customers who only want to lock up their cash for a short period, there is a one-year fixed-rate bond. This pays 2.50% on balances from £500 to £39,999 and 3% on balances from £40,000 to £1million.

More information on Barclays bonds