Compare Medium to Long term bonds with Confused.com

Looking for long term savings?

If you are able to lock away your savings for a longer period of time then a mid to long fixed rate bond could be for you. As you are agreeing to lock away your money for a longer period of time you are rewarded by getting a higher interest rate. Again, additional deposits are not normally allowed so these are worth considering for lump sum savings.

Fixed term bonds with a higher interest return

Although the interest rate may be higher it is worth noting that if you close an account early you will most likely incur a penalty. So it is worth making sure you can leave your money locked away for the length of the bond. Some bonds will pay any interest into a seperate account giving you access before the end of the term.

Medium & Long Term Accounts at Confused.com


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

Savings FAQs

  • What does AER interest rate mean?
    Answer: Annual Equivalent Rate: this is shown as a percentage and tells you the rate of interest you will earn over the period of one year. If your interest is paid monthly then the AER may be slightly higher than the gross rate.
  • What is Basic Rate Tax and how does it apply?
    Answer: Basic rate tax is charged at 20% on the first £35,000 of income above your annual personal allowance. The personal allowance is £7,475 for the under 65s, £9,940 for those aged 65-74 and £10,090 for the over 75s. You will pay tax on your interest earned on any savings account bar an ISA which are tax free.
  • Can I have more than one account?
    Answer: Yes you can open a number of accounts with various providers. The only exception is ISA accounts which are limited by the tax allowance each year.
  • What account features should I be looking for?
    Answer: This all depends on what you want to get from your savings. The larger the interest rate (AER) then the greater return you will get on your cash, however you should also consider other things like how you want to manage the account, and if you intend to make any withdrawals or future deposits.

Understanding Savings Accounts

Help & Tips

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.