Start by comparing as many accounts as possible by following these three tips:

  1. 1.

    Look for the best interest rate: The higher the rate the more interest you will earn

  2. 2.

    Check the withdrawal rules: Some bonds charge you for withdrawing early or restrict your access completely, so check the terms and conditions before opening

  3. 3.

    Make sure the account you choose is protected: Most companies protect your funds up to 75,000 under the Financial Services Compensation Scheme (FSCS) or have their own compensation schemes to cover you

If you are happy to leave your money untouched for at least five years then you could speak to an independent financial advisor to discuss all your long term savings options.

What types of five year bonds can you get?

Fixed term bond

These tie your money up for five years from the date you open the account, and cannot be accessed until the maturity date.

For example, if you open a five year fixed term bond on 30th March 2017, you will have to wait until 30th March 2022 before you can access your money again.

Most fixed rate bonds will charge you an interest penalty if you try to withdraw your money, and you will be expected to close the whole bond down.

There are also limited issue bonds that have a set maturity date regardless of when you open the account.

Peer to peer

The peer to peer accounts in our table tie your money up for five years but your money is lent out to borrowers which usually means you are offered a higher return compared to bonds.

Our table only shows peer to peer accounts that will give you a fixed interest rate.

These accounts are not protected under the FSCS, but some use their own scheme to compensate you should a borrower default on their payments.

If a peer to peer company goes bust, you may not get any of your money back.

How much do you need to open a five year bond?

You can open a five year bond from as little as 10, but most require you to deposit a much larger amount to get started. Our table shows you how much you need to open each five year bond.

Some bonds let you add more money for a set time, like 14 or 20 days after you open it, but others only allow one opening deposit, so if you want the flexibility to add more funds over time then a fixed bond may not be the best option for you.

Five year fixed rate bond FAQs

Q

Can I make withdrawals from a five year bond?

A

Most bonds do not let you take any money out, and those that do often charge you an interest penalty. Find out more in this guide.

Q

Are five year bonds tax free?

Q

Can I have more than one five year bond?

A

Yes, but make sure you keep some money accessible in case of an emergency. Read this guide for help choosing the right savings account.

Q

Is the interest added to my bond or another account?

A

You can usually choose how your interest is paid out, but most add the interest to your bond annually and at the end of the term.

Q

Can I get a five year bond that pays interest monthly?

A

Yes, most fixed rate bonds let you have your interest paid out monthly or annually. Make sure you check the terms and conditions before you apply.

Q

Can I open a five year bond if I have bad credit?

A

Yes, your credit record is not checked when you open a fixed rate bond. If you need help choosing the right savings account, read this guide.

Q

What is AER?

A

It is the Annual Equivalent Rate which tells you how much interest you will actually get paid until the end of the term of your chosen fixed rate bond.