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Fixed rate bonds

Compare fixed rate bonds

A fixed term bond can offer a long term solution for your savings, with an interest rate guaranteed for a set length of time. If you're investing a lump sum you could find a better return if you lock your money away.

Fixed term bonds with a higher interest return

A fixed rate bond means you have to lock your savings away for a set term without access, however for foregoing access to your cash you can earn more interest as a result.

1 & 2 year fixed rate bonds

Ranked in order of Interest Rate (AER)


  • Minimum
    opening balance
  • Interest rate
    (AER)
  • Manage your
    account
  • Withdrawals
    allowed
  • Term
  • Additional
    deposits

3+ years fixed rate bonds

Ranked in order of Interest Rate (AER)


  • Minimum
    opening balance
  • Interest rate
    (AER)
  • Manage your
    account
  • Withdrawals
    allowed
  • Term
  • Additional
    deposits

Fixed rate bonds FAQs

  • Do I have to pay tax on a fixed rate bond?
    Answer: The interest earned on fixed rate bonds is taxable, so it’s important to take this into account when calculating how much interest you’ll receive. You may wish to consider a fixed rate ISA instead, as any interest you earn is yours to keep and won’t be taxed.
  • What happens when my bond matures?
    Answer: You'll typically be contacted 30 days before the bond is due to mature, and you'll then be able to arrange to transfer the money to another account.
  • Will I get the advertised rate?
    Answer: Every customer will get the advertised rate on a fixed rate bond as long as they deposit the required amount. It’s important to check the minimum deposit as these can vary greatly between accounts.

Understanding Savings Accounts

What is a fixed rate bond?

A fixed rate bond is a type of cash savings account that will pay a fixed rate of interest for a set term. Usually you can pay into the bond only once when you open it and can’t make regular payments into it. You usually won’t be able to withdraw your money until that period is up, although some providers will allow you to do so in return for giving up a number of days’ interest. Interest is usually paid when the bond matures, and you’ll need to pay tax on the interest.

The rate of interest you’ll receive on your savings can be a fixed percentage or, less commonly, a fixed percentage above the base rate, known as a tracker bond.

A fixed rate bond may be the right account for you if you have a lump sum to save and do not need access to your money until the end of the term.

Key things to consider

It’s important to choose your bond carefully, and to check the terms and conditions before you open the account.

Opening a fixed rate bond locks in the interest rate, so if the Bank of England base rate were to fall significantly your interest rate would not fall with it, protecting your savings from falling rates. However, if the base rates were to rise then interest rate wouldn’t change – so potentially you could miss out on higher rates.

You’ll also need to consider how much access you’ll need to your money, and whether your account will allow you to withdraw any of it.

Our Savings Guide has more information on all types of savings accounts, including Fixed Rate Bonds.