Earn a guaranteed amount of interest with a fixed rate bond. Our best fixed rate bonds offer terms of one to five years and could be a great way to get returns on your savings.
You'll only find results from genuine companies. Our data experts check each company before we add them to our comparisons.
Before you start comparing our best bond rates, ask yourself the following questions ...
1
How long can you leave your money untouched?
Some fixed rate bonds don't let you access your cash until the end of the term, so check carefully.
2
What's the interest rate?
The best fixed rate bonds come with higher rates of interest. This means that if you find the best bond rates you'll get more for your money.
3
How much do you want to save?
Some fixed rate bonds can be opened with as little as £1 whereas others can require up to £1,000 or more.
4
How often do you want your interest to be paid out?
The best fixed rate bonds let you choose whether to have the interest paid yearly or monthly.
| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1,000 | 2.31% | 2.31% | 2.31% | 2.31% |
| Maximum Initial Deposit | £85,000 |
| Minimum Initial Deposit | £1,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £5,000 | 2.25% | 2.25% | 2.25% | 2.25% |
| Maximum Initial Deposit | £250,000 |
| Minimum Initial Deposit | £5,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1,000 | 2.25% | 2.25% | 2.25% | 2.25% |
| Maximum Initial Deposit | £85,000 |
| Minimum Initial Deposit | £1,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1,000 | 2.24% | 2.24% | 2.24% | 2.24% |
| Maximum Initial Deposit | £85,000 |
| Minimum Initial Deposit | £1,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £500 | 2.15% | 2.15% | 2.15% | 2.15% |
| Maximum Initial Deposit | £2,000,000 |
| Minimum Initial Deposit | £500 |
| Minimum Age | 16 years |
| Permanent UK Resident |
| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1,000 | 2% | 2% | 2% | 2% |
| Maximum Initial Deposit | £500,000 |
| Minimum Initial Deposit | £1,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1,000 | 1.9% | 1.9% | 1.9% | 1.9% |
| Maximum Initial Deposit | £1,000,000 |
| Minimum Initial Deposit | £1,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1,000 | 1.9% | 1.9% | 1.9% | 1.9% |
| Maximum Initial Deposit | £85,000 |
| Minimum Initial Deposit | £1,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1,000 | 2.1% | 2.1% | 2.1% | 2.1% |
| Maximum Initial Deposit | £85,000 |
| Minimum Initial Deposit | £1,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £500 | 2.35% | 2.35% | 2.35% | 2.35% |
| Maximum Initial Deposit | £2,000,000 |
| Minimum Initial Deposit | £500 |
| Minimum Age | 16 years |
| Permanent UK Resident |
Fixed rate bonds, or savings bonds, are a type of savings account, which tie up your money for a set length of time, known as the term. You're paid a fixed interest rate for the duration of the term.
Fixed rate bond rates are usually higher than what you'd get with an easy access account. Typically, you can only deposit your money into them once, so you'll need to put it all in one go.
There are two main types of fixed rate bonds:
These are standard fixed rate bonds that give you a fixed interest rate for the term of the bond.
These give you a fixed interest rate, at an agreed level above the Bank of England base rate.
When you compare fixed rate bonds, you'll be able to find the best bond rates for your financial goals.
Here are the typical term lengths offered, and the interest you may be able to earn.
| Term length | Interest rates (up to) | Early withdraw penalty | Minimum investment |
|---|---|---|---|
| 1 year | 1.45% | No interest | £1 |
| 2 year | 1.60% | No interest | £1 |
| 3 year | 1.85% | No interest | £1 |
| 5 year | 2.20% | No interest | £1 |
Fixed interest
Although less common, some fixed rate bonds pay a fixed rate of interest on a monthly basis. This means that you'll earn the same amount of interest every month for the term of the bond. Often you can have the interest paid into a separate account and use it as income.
Compounded interest
Most fixed rate bonds, your interest is paid out every year. This means you can benefit from compounding interest over time. Compounding interest is where the interest gets added to the initial amount invested. So every year you'll earn interest on a larger sum of money.
When your term ends, your bond has 'matured'. About a month before this happens, you'll be informed by your provider.
Usually you'll be given you a few options to think about. You can choose to:
Reinvest all the money
Reinvest all the money and add more
Reinvest some of the money, and withdraw some
Cash in your fixed term bond and close the account completely.
Think carefully about what you want to do with your earnings before you making a decision.
Here's what to do when it's time to cash in your matured fixed rate bond.
If you want to close a mature fixed rate bond account, you'll need to fill out a form given to you by your bank.
Wait for your bank to send you a cheque or transfer the money into your account
Decide what you'd like to do next. If you want to reinvest your money, you'll need to compare the best fixed rate bonds and all other savings accounts, or speak to a financial advisor.
Any interest you earn from a fixed rate bond that is in excess of your Personal Savings Allowance will be taxable.
The Personal Savings Allowance for basic rate taxpayers this is £1,000 and for higher rate taxpayers £500 for the 2021/2022 tax year.
However, those earning £17,570 or less in the 2021/22 tax year get an additional £5,000 tax-free interest, known as the 'starting rate'. Those earning more than £12,750 are also eligible for the starting rate, but the allowance decreases by £1 for every £1 of additional income over £17,570.
Peace of mind
Guaranteed interest rate for the term of the bond
Minimal risk
You lose access to your money for the term of your bond
You're stuck in an interest rate even if interest rates rise during the term of the bond
Requires you to pay in a lump sump
Most savings providers are registered with the Financial Services Compensation Scheme (FSCS), which protects your deposits up to £85,000 per person per banking license.
But be careful how much you save with each provider. Often different banks operate under a single banking licence. This means that you'll only be covered up to £85,000 in total if you have accounts with different providers under the same license¹.
Yes, there are alternatives to bank bonds if you want to invest your money. You could look at peer to peer savings accounts which can give you a fixed rate of interest for an agreed term. The interest is usually higher than you'd get with even the best bond rates. But the downside is that your money isn't protected under the FSCS and it can be risky.
Other options when you're looking for the best fixed rate savings include fixed rate ISAs and high interest current accounts.
It is tougher than ever to make money from your savings, but you could get a better return if you expand your search for interest. Here are your options.
Read MoreKnowing what to do with savings can be difficult, especially when rates are so low. Here is what you can do if you have money to invest.
Read MoreHere is how interest works on your savings and how tax can affect what you get as a return.
Read MoreComparing fixed rate bonds could help you increase your returns. Our multiple award-winning comparison service makes sure you get our best interest rates. Our aim is to provide you with the most up-to-date information, as well as useful tools and calculators so to help you make life's most important decisions and take control of your money.
We have always aimed to provide the best possible services to bridge the gap between our users and our clients. Over the years, we have been thrilled to be recognised by various prestigious bodies and organisations for those efforts.
¹FSCS explanation on how banking licences affect FSCS protection?
Last updated: 7 February, 2022
