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We’ve featured Shepherds Friendly on this blog in the past when we posted reviews of their Stocks and Shares ISA and Junior ISA. Today we’re looking at their now market leading 5 year fixed rate bond.

Is the Shepherds Friendly 5 Year Bond right for you and what are the key things you need to know? Let’s quickly look at what they have to offer.

How Much Interest Will You Earn?

So, how much interest will you earn? The rate on offer is currently 2.25% (This may change). This is fixed for the term, which means you are guaranteed to receive this amount of interest on your investment.

Who Can Invest?

To invest in the Shepherds Friendly 5 Year Bond you will need to be 18 or over. You will also need to be a UK resident and have a minimum of £1000 to invest.

How Much Can You Invest?

The minimum you can invest in this bond is £1000 and the maximum you can invest is £125,000.

Can You Make Early Withdrawals?

Shepherds Friendly do not allow early withdrawals to be made from their 5 Year Fixed rate bond. This means that your money will be tied up for the full 5 Years – unless the company deems the circumstances to be exceptional.

With this in mind, be sure that you can confidently commit your funds for the duration of the bond.

Is Your Money Safe?

Shepherds Friendly have over 190 years of experience to draw from, so you can be confident that they know what they are doing. It’s also comforting to know that your investment is covered by the FSCS up to the maximum investment amount of £125,000.

So, in the unlikely event that the company should run into financial trouble, your full investment would be safe in this case.

Summary

If you’re looking for a guaranteed return on your investment and you don’t mind tying your money up for a minimum of 5 years, then this Shepherds Friendly fixed rate bond might well be of interest to you. The bond now comes with market leading rates for this type of product and the benefit of FSCS protection for your full investment amount.

“Capital at risk. Investments can go up and down in value, and you may not get back what you put in. This blog does not constitute financial advice. If you’re unsure, seek independent financial advice.”