Home Savings Accounts Fixed Rate Bonds
Fixed Rate Bonds are a type of savings account that offer a fixed rate of interest for a set length of time, also known as the term. Using the chart below, compare terms from 1 to 5 years, alongside two new options: up to one year and 18 months.
All providers that we feature in the below chart are FSCS protected.
Start your comparison today and find the best Fixed Rate Bonds.
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Browse Fixed Rate Bond Terms
Today's Best Fixed Rate Bonds
Today's Best Fixed Rate Bonds
We found 432 products in total, of which 79 have links to providers.
Selecting ‘Provider Links First’ brings all products that you can apply for directly via Moneyfacts to the top of the chart in rate order. Products that do not have an ‘Go To Provider's Site’ button will appear below, again in rate order. Selecting ‘Rate’ will change the chart to list all products in rate order. Products that have ‘Go To Provider's Site’ links will still be in the list but in rate position.
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Investec Bank plc 1-Year Fixed Rate Saver
AER
5.15%
Account Type
Fixed
Term
1 Year Bond
Interest Paid
On Maturity
Opening Account
Managing Account
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StreamBank Fixed Rate Account - Issue 12
AER
Account Type
Fixed
Term
1 Year Bond
Interest Paid
On Maturity
Further Options ˅
Opening Account
Managing Account
AER
5.15%
Account Type
Fixed
Term
1 Year Bond
Interest Paid
Monthly
Opening Account
Managing Account
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Monument Bank 6 Month Fixed Term Deposit
AER
5.14%
Account Type
Fixed
Term
6 Month Bond
Interest Paid
On Maturity
Opening Account
Managing Account
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Emirates NBD HL Active Savings - 3 Month Fixed Term Deposit
AER
5.09%
Account Type
Fixed
Term
3 Month Bond
Interest Paid
On Maturity
Opening Account
Managing Account
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Emirates NBD HL Active Savings - 9 Month Fixed Term Deposit
AER
5.08%
Account Type
Fixed
Term
9 Month Bond
Interest Paid
On Maturity
Opening Account
Managing Account
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Charter Savings Bank HL Active Savings - 6 Month Fixed Term Deposit
AER
5.07%
Account Type
Fixed
Term
6 Month Bond
Interest Paid
On Maturity
Opening Account
Managing Account
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Kent Reliance HL Active Savings - 6 Month Fixed Term Deposit
AER
5.07%
Account Type
Fixed
Term
6 Month Bond
Interest Paid
On Maturity
Opening Account
Managing Account
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National Bank of Egypt (UK) Limited Raisin UK - 6 Month Fixed Term Deposit
AER
5.06%
Account Type
Fixed
Term
6 Month Bond
Interest Paid
On Maturity
Opening Account
Managing Account
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Aldermore 1 Year Fixed Rate Savings Account
AER
5.05%
Account Type
Fixed
Term
1 Year Bond
Interest Paid
On Maturity
Further Options ˅
Opening Account
Managing Account
AER
5.05%
Account Type
Fixed
Term
1 Year Bond
Interest Paid
Monthly
Opening Account
Managing Account
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Habib Bank Zurich plc HBZ Fixed Rate eDeposit
AER
5.05%
Account Type
Fixed
Term
12 Month Bond
Interest Paid
On Maturity
Opening Account
Managing Account
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Depositor Protection
Eligible deposits with UK institutions are protected by the Financial Services Compensation Scheme (FSCS) up to a maximum level of protection of £85,000 per person per institution. All new savings or bank accounts provided to UK customers are now covered by the FSCS.
Disclaimer
All rates subject to change without notice. Please check all rates and terms before investing or borrowing.
Provider Links
‘Go To Provider's Site’ links are where we have an arrangement with a provider so you can move directly from our site to theirs to view more information and apply for a product. We also use ‘Speak to A Broker’ links where we have an arrangement with a preferred broker to move you directly to their site. Depending on the arrangement we may receive a modest commission either when you press a 'Go To Provider's Site' or 'Speak To A Broker' button, when you call an advertised number or when you complete an application following a link from our website.
Fixed rate bonds explained
What are fixed rate bonds?
Fixed rate bonds are a type of savings account that offer a fixed rate of interest for a set length of time, also called the term. This means the bank or building society cannot change the interest rate during the term of the bond and you may not be able to access your funds at all until the term ends.
What terms of fixed rate bonds are available?
The terms of fixed rate bonds can range from six months to more than five years. You should consider how long you can go without access to your funds before deciding on the best term of fixed rate bond for you.
Why do fixed rate bonds pay higher rates of interest?
Fixed rate bonds usually pay higher interest rates than those available for easy access and notice savings accounts. They offer better rates of interest than other types of savings accounts because the bank or building society has more confidence in how long they will have your funds for. They can then use these funds to provide loans and mortgages to their other customers.
How safe are fixed rate bonds?
Fixed rate bonds are a type of cash savings accounts and this means there is no risk to your capital. Furthermore, fixed rate bonds held with a UK authorised bank or building society are also protected by the Financial Services Compensation Scheme (FSCS). Our depositor protection guide includes a full list of authorised UK banks including those that share their banking licence and protection with other or parent brands.
Can you top up a fixed rate bond?
Most fixed rate bonds only allow a single lump sum deposit when you open the account. This means when you open a fixed rate bond you should have your money ready to transfer as one deposit. However, some do allow further additions for a short period after the account is opened, or while it is still available to new customers.
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How to get the best interest rate for a fixed rate bond
1. Longer terms usually pay higher interest rates
Typically, the longer the fixed term the higher the interest rate available, however you will need to consider how long you can go without needing to access the money.
2. Look for fixed rate bonds that pay compound interest
Some fixed rate bonds offer compound interest, and this can help your savings to grow faster. This means the interest earned is added to your savings balance, usually annually, and any future interest earned is then calculated using the savings balance plus previous interest added to the account. Find out more about how compound interest works.
3. A higher opening deposit may get a better interest rate
Banks and building societies can offer fixed rate bonds with higher interest rates if you have a higher opening deposit. The table above can be filtered to show the best fixed rate bonds based on the opening deposit.
4. Interest earned can be paid at differing frequencies
Some fixed rate bonds allow savers the choice of when you earn your interest. The best fixed rate bonds offer savers a choice of when this would be and some of the options include monthly, quarterly, annually or on anniversary of opening the account.
What are the best options for fixed rate savings?
Fixed rate bonds are the best way to secure the greatest amount of savings interest on larger sums of money of a few thousand pounds or more. They offer many advantages over other more accessible accounts such as easy access savings accounts, including the certainty of how much interest your savings will earn you, no restrictions on the number of fixed rate bonds you can open (although some banks and building societies will have a maximum balance) and the ease of being able to see if you might exceed the Personal Savings Allowance (PSA).
What are the best fixed rate bonds?
Fixed rate bonds offer two ways to calculate the interest they will pay. Right now, 99% of banks and building societies with a fixed rate bond set the interest rate directly themselves. The other approach is something called a tracker bond, which use a fixed interest rate to track against the Bank of England base rate. These were more popular many years ago when interest rates were much higher. They work by having a fixed tracking rate, let’s say 0.5%, above the Bank of England base rate.
We show nearly all of the fixed rate bonds available in the UK, meaning you can be confident you will see the best fixed rate bonds when using our chart above.
Are fixed rate bonds a good investment?
Fixed rate bonds offer certainty of return and security for your savings. Over the longer term, say 10 years or more they are unlikely to make the same returns as investing in the stock market. But, they also avoid the risk of losing your capital and remove the volatility of the value of money due to stock market fluctuations. They should be considered as part of a savings portfolio, where you have easy access accounts for money as a rainy day or emergency fund, fixed rate products for guaranteed returns and then investments for potential stronger returns over the longer term.
Do bonds lose money in a recession?
No, all the fixed rate bonds shown on Moneyfactscompare.co.uk are not connected to the performance of the economy and therefore a recession has no impact on the return you will receive. This is also true if there is a stock market crash, bonds remain separate to this performance and are therefore not affected. This means the returns offered when you open the fixed rate bond are guaranteed as long as these are maintained until the maturity date.
What are the disadvantages of a bond?
Bonds require you to keep your money in the account until this matures, meaning that if you have an emergency and need the money it may not be available or it may reduce or remove any interest earned. The interest is fixed for a fixed rate bond, while this brings certainty of return it does mean you will not gain any benefit if interest rates increase in the future.
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What are the alternatives to a fixed rate bond?
Those with larger sums to save could choose to invest in the stock market, however your capital is at risk and your returns can be volatile depending on the performance of the markets. High interest current accounts and regular savings accounts are other alternatives to earn good rates of interest, but these often have a cap on the maximum balance allowed of usually a few thousand pounds.
There is nothing stopping you from having several different types of savings accounts. Indeed, it would be quite sensible to have an easy access account for emergency funds, a fixed rate bond for savings you don’t need to keep to hand, and an ISA if you want to take advantage of saving in a tax-efficient way.
How to find an alternative or additional way to save or invest
You can complement your fixed rate bond with the different types of savings accounts and investments:
Easy access savings accounts
Notice savings accounts
Invest platforms
Stocks and shares ISAs
Compare investment options
How many fixed rate bonds can I have?
You can have as many bonds as you like. You will of course have to adhere to all the limitations on each bond, such as the minimum investment and access restrictions. You’ll also have to keep track of all your different bonds to make sure you don’t breach your personal savings allowance (and so you can report it if you do breach that limit).
How is interest paid on fixed rate bonds?
Most fixed rate bonds pay interest every year and this means the interest you earn is compounded over the longer term. When interest is compounded, this means your interest is added to your savings increasing your total balance. The next time your interest is due this is calculated on the larger sum of money. As a result, your savings can grow even more.
Some fixed rate bonds will only pay interest when the term ends, meaning interest is only applied to your
initial opening balance. Other bonds may make you have your interest paid into a separate account, again limiting your ability to earn compound interest. Our chart above shows which accounts offer compound interest – just look at the further details tab.
Other fixed rate bonds pay interest monthly, this can be used as an income if paid into another account or compounded if added to the fixed rate bond balance.
When can I withdraw my money from the best fixed rate bonds?
Most of the time you cannot access your money in a fixed rate bond until the term has finished. You may decide that the best fixed rate bond for you is one that allows withdrawals, just in case of emergencies. You should be aware that there may be a penalty to do so and this is usually a reduction in the interest you will earn. This is called an ‘early access penalty’ or ‘interest penalty’. In rare cases you may find this penalty eats into your savings balance. If you need to withdraw your money you will nearly always need to close your account afterwards.
What are early access penalties and how much interest could I lose?
Fixed rate bonds that allow some access before the end of their term may impose a flat loss of interest penalty, no matter when in the term you make the withdrawal (so, 180 days’ loss of interest, for instance). Others may taper the penalty depending on when the withdrawal is made (for example: 365 days’ loss if the withdrawal is in the first year, 320 days’ loss if the withdrawal is in the second year, etc.). Be careful, though, as this means that if you were to withdraw funds from a bond with a 180-day loss of interest penalty after just 160 days, for instance, you could actually lose money.
Can you close a fixed rate bond early?
This depends on the terms of the fixed rate bond. Some will allow early closure but often at the cost of an interest penalty. Others will not allow early closure at all, meaning you must wait until the fixed rate period ends to reclaim the funds deposited.
What are the different terms for the best fixed rate bonds?
Some bonds run for the term from the date they are opened and funds deposited, while others will have a set end date no matter when the account was opened. The most common terms are one-year fixed rate bonds, two-year fixed rate bonds and five-year fixed rate bonds.
The best short-term fixed rate bonds
Generally, short-term fixed rate bonds include those with terms of six months, nine months, one-year and 18-months.
What are the best fixed rate bonds for two and three years?
Find all the best two and three year fixed rate bonds using our charts.
The best long-term fixed rate bonds
Generally, long-term fixed rate bonds include those with terms of two years up to five years. Although there are fixed rate bonds of seven years or more available.
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Once I have chosen the best fixed rate bond, will I be taxed?
You must pay tax on the interest you earn from savings and investments if these exceed the Personal Savings Allowance. The Personal Savings Allowance allows you to earn interest up to a set level tax-free. The Personal Savings Allowance for basic rate taxpayers this is £1,000 and for higher rate taxpayers £500. If your interest earnings exceed this then you will need to declare this to HMRC and pay tax at the relevant rate.
If your income is less than £17,570 you also benefit from a top up called the ‘starting rate’ to add to your Personal Savings Allowance. This gives those with earnings of £12,570 or less an additional £5,000 of tax-free interest. Those earning more than £12,750 will still get the starting rate but the value of this decreases by £1 for every £1 of additional income.
Savers can also use ISAs to save and not pay tax on balances of up to £20,000 per tax year, but they do come with rules about how to maintain their tax-free status. Find out more about how ISAs work.
However, most savers will find they do not need to pay tax due to the Personal Savings Allowance and can therefore compare the best savings rates across the whole range of savings types to get the best returns.
Find out more about the Personal Savings Allowance in our guide how are my savings taxed?
Can you lose money on fixed rate bonds that are held until maturity?
You will receive the full amount of interest agreed when you opened the fixed rate bond as long as this remains in place until the bond matures. If you close the bond early, then you will most likely be penalised for a set amount of interest as outlined when you took out the bond. There are very rare occasions where this penalty could exceed more than any interest already earned and therefore your capital is required to pay this off. Ultimately when opening a fixed rate bond you should do this on the basis that you know you can do without the funds for the fixed term.
If the bank or financial institution fails, then your deposit will be protected up to the sum of £85,000 under the Financial Services Compensation Scheme (FSCS).
Fixed rate bond FAQs
What to do when the term on your fixed rate bond ends
When the term on your fixed rate bond ends you will need to decide about what to do with your funds. The point when a bond ends is also referred to as it being ‘matured’. When your bond has matured you can choose to invest all your money again, add to it, or withdraw some or all of it. Your savings provider should write to you before your bond matures to share what interest rates they can offer and instructions of how to move your funds to a new bond with them. To make sure you find the best fixed rate bond interest rates you should also compare what your savings providers offers to those rates on the chart above.
Are fixed rate bonds covered by the FSCS?
UK authorised savings providers are backed by the Financial Services Compensation Scheme, which protects up to £85,000 of your savings per banking group. You can find out how your money would be protected with a certain account by looking at the further details of each account on the chart above.
How much money do I need to open a fixed rate bond?
That will depend on the minimum deposit requirement, which will be displayed in the further details of each account in your search results. Some of the best rate fixed bonds may be the ones with the highest deposit requirement, which means you’d need quite a hefty pot. However, this doesn’t always have to be the case.
How to pay money into your fixed rate bond
Fixed rate bonds usually require you to make your opening deposit by a set date or for as long as the account is available to customers – also called while the issue is open. Some banks and building societies will restrict you to one single payment, while other will allow multiple deposits if these are before the set date. How long you are allowed to make a deposit will vary from provider to provider.
If you are looking for a savings account that will allow you to add to your savings, a fixed rate bond is not for you and instead an easy access or notice account may be more suitable.
Can you add money to a fixed rate bond?
Again, this is dependant in the terms of the fixed rate bond you have invested in. Some will allow additional deposits for a limited time after the opening of the account or while the issue remains open. Others will not allow any further additions at all after the initial deposit, so be sure to check carefully before finalising the transaction.
Can I open a fixed rate bond online or by post?
Fixed rate bonds can be opened online, by post, by app or in branch – however, it will be the choice of the bank or building society as to what channels they use. Many of the best fixed rate bonds by rate offer a way to open these online.
Can I still get the best fixed rate bonds if I have a bad credit score?
Yes, your credit score is not connected to being able to open a savings account including a fixed rate bond. However, you will need to be the identification requirements of the bank or building society. Our guide to getting a bank account without proof of address explains more about identification requirements. If you are worried about your credit history you can often check your credit score for free.
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