This week we see a new best interest rate for a 5 year fixed rate savings account, the 5 year fixed rate bond from BM Savings, it's offering an interest rate of 4.65% more information here:

5 year fixed rate bond (yearly interest) | BM Savings

5 year fixed rate bond (yearly interest)


This bond gives you a fixed rate of interest over an agreed term. Our current issue offers a fixed rate of 4.65% gross p.a. / AER for 5 years.


Benefits and features


  • Fixed interest rate – so you always know how much your savings will earn with an interest rate fixed for the account term
  • Save from just £1 – up to £10 million, or £20 million for joint accounts


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you may also want to take a look at the
5 year inflation rate bond (issue 3)

it tracks the RPI annual inflation rate paying the same interest rate as well as paying a flat 0.5% on the account, which cold be a good deal, at present at least RPI is hovering around 5% meaning you'd be getting 5.5% but it's hard to tell if RPI will go up. I have noticed that the UK is usually about 5 years behind what happens in Australia (house prices, interest rates, food prices etc.) and in the past 5 years they've had massive inflation, but there's been extenuating circumstances for these massive increases there.

anyway it's worth a look:
5 year inflation rate bond (issue 3) | BM Savings

The 5-year inflation-rate bond (issue 3) is a deposit based account which uses the annual rate of inflation (as determined by the Retail Prices Index (RPI) annual inflation rate measure) to calculate the yearly gross interest rate on your savings. Your interest rate will be based on the RPI annual inflation rate. You'll also receive a fixed rate of interest each year of 0.50% gross/AER. The interest will be paid each year on the anniversary of the start date of the account.


The account is designed to be held over a 5 year term so you should only deposit money in the 5-year inflation-rate bond (issue 3) if you don’t need access to it.
The All Items RPI is an official measure of the level of prices of goods and services bought by most UK households, which can be used to calculate the rate of inflation. It is compiled by the Office for National Statistics (ONS) and is currently one of the most familiar general measures of inflation in the UK. Each month the ONS publishes an RPI annual inflation rate which represents the percentage change in the All Items RPI over the previous 12 months.


Benefits and features


  • Early deposit interest rate - you'll receive a fixed interest rate of 0.50% gross/AER from the day your deposit is made until the start date of the account which is 20 September 2011. On this day, any interest earned will be transferred either back to the account or to a nominated account
  • RPI annual inflation rate - during the 5 year term, we'll use the July RPI annual inflation rate (published in August) to calculate your yearly interest rate
  • A fixed rate of interest - of 0.50% gross/AER will be paid yearly on the anniversary of the start date to your account or to a nominated account
  • Save from just £500 - the maximum balance on this account is £1 million for each customer
  • Additional deposits - can be made during the offer period as long as the issue remains open
  • Original deposit - even if the annual inflation rate is zero or is a negative value, you'll still receive your original deposit plus the fixed rate of interest which will be paid each year less any withdrawals and withdrawal charges
  • 14 day cancellation period - you may close or withdraw your deposit plus any interest earned within 14 calendar days of your first deposit without any charge being made