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Easy access savings accounts offered by providers are intended for short-term savers. Its possible for a person to hold one of these accounts for a number of years ( long-term ). The fact that the money is instantly available means that providers pay lower interest rates. If someone wants to put money aside for a fixed period, they can earn a higher rate of interest without taking a lot of risk by buying a fixed term savings account from a provider. Many providers call these bonds Many providers offer these, and the maturity periods vary from 6 months to 5 years. The interest rate is normally fixed for the period. Some dont allow withdrawals within the maturity period and other allow withdrawals but impose an interest penalty. Eg a fixed-rate e- bond. An online account paying an AER of 1% gross per annum and it matures on 20 February 2021. The minimum investment is 31 and the 2.4.1 - fixed term ...
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