We like Capital One fixed-rate bonds

The latest bank base rate cut has brought further misery to savers and prompted many to seek out safe alternatives for their money. One option to consider is tying up your cash in a fixed-rate bond.

Stuart Glendinning from Moneysupermarket.com says: "As a rule of thumb, the bond best buys seem to be dominated by Capital One or Julian Hodge bank. Capital One is offering 4.4% AER for its five-year bond, 4.3% for four years; 4.2% for three years and 4.1% for two years - which are all market leaders.

"Julian Hodge is trailing by a margin of 0.1% or 0.05%. Lambeth beats Capital One on its one-year account by offering 4.1% as opposed to 3.95%, but both of these are topped by Coventry's Call Save account paying 4.2% fixed until 31/10/04."