HomeHow is interest calculated? 
The Bond pays a fixed rate of interest of 3.55% for one year.
Is interest accumulated to my savings?
Interest is paid at maturity and can be credited to your savings account, another Aldermore account or any other bank or building society account you have in your name.
At the end of the Fixed Rate Bond Aldermore will write to outline the options available to you.
How long do I have to tie my savings up for?
One year.
Can I get access to my savings?
No, early withdrawals are not allowed before the end of the term.
How do I manage my account?
You can pay money into the account via Direct Debit, BACS, cheque, direct bank transfer, Standing Order or a CHAPS payment.
Once opened the account can be operated by post, phone or via internet access.
How much can I save?
The minimum that you can save is £1,000 and the maximum is £1m.
Once you have opened the account you cannot make additional payments to it.
How is the interest taxed?
Interest is paid after the deduction of basic rate tax; non taxpayers can apply for interest to be paid gross, i.e. with no tax deducted.
What are the advantages of this account?
- This account is currently the leading Fixed Rate Bond on our best buy tables over a one year period
- Aldermore is a member of the Financial Services Compensation Scheme
- Non tax payers can apply to have interest paid without the deduction of tax
- The minimum required to open the account is relatively low at £1,000
What are the disadvantages?
- The interest rate of 3.55% is currently below inflation
- The account does not allow savers to get access to their savings during the one year term
- No additional payments can be made into the bond once it has started
The Investment Sense Verdict
If you have already used your Cash ISA allowance and are looking to tie up your savings for one year then this One Year Fixed Rate Bond from the Aldermore looks a good bet. Providing of course you can live with having no access during that time.
It is top of our best buy tables for one year fixed rate accounts and has a relatively low entry level of £1,000. It also offers a variety of online and offline ways of managing the account.
Remember though the rate offered of 3.55% is currently less than inflation meaning that the real value of your savings will have reduced over the term unless there is a significant fall in inflation over the next 12 months.
Should you wish to discuss this account, or other ways of getting a real, above inflation, return on your savings, speak to one of our team of advisers today. They can be contacted on 0115 933 8433, 0845 078 7774 or by sending an email to info@investmentsense.co.uk.
