Spotlight On: Cahoot's two-year fixed rate bond

The deal

From Monday, online bank Cahoot – part of Santander – will offer 4.01 per cent over two years on its new fixed- rate bond.

The good points

The bond will go the top of the two-year fixed-rate table, 0.01 per cent higher than rival deals.

The bad points

You'll need at least £25,000 to be able to take out the bond. However, Yorkshire Bank's rival two-year bond pays 4 per cent and only requires a minimum £2,000.

Conclusion

Rates on medium-terms bonds are gradually creeping up. While this will top the table on Monday, it may not be there for long. Bearing in mind that you have to lock your money away for two years with these deals, it may be worth waiting to see what response there is from rival savings institutions before making a move.