A 2 year fixed rate bonds can only be for you if you want to earn a top savings rate, and you are prepared to not have access to your money for the 2 year term.

In order to cash in a 2 year fixed rate bonds, the bond holder have to do a thorough research and choose the best 2 year fixed rate bond issuer.

Characteristics of a 2 year fixed rate bonds

i)It guarantees that you earn more interest rate than the 1 year fixed rate bonds.

ii)Majority of 2 year bonds won’t let you access your money early-before a period of 2 years is over.

Below is a table of some the 2 year fixed rate bonds issuers from which you can choose from.

From the above table it is for the Corporations, individuals, associations, public or private organizations, and fiduciaries to choose which product is best for doing so they have to consider the amount of cash they are willing to commit since different providers have different minimum deposit that one can open an account with. If your lump of cash doesn’t meet the minimum deposit threshold you will not be eligible for a bond.

Also you might have to consider the means by which you want to open the account by. Different bond issuers have different means by which they allow their customers to open account through. The most common methods are either via the provider’s branch, the Posta, online through the provider’s website or via phone.

The Annual Equivalent Rate (AER) should not also be ignored while choosing the 2 year fixed rate bond. AER is calculated as compound Interest that is, any interest paid is combined with the original balance and the next interest payment will be based on the slightly higher account balance.