Compare our best fixed-rate bonds

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.

  • Start saving with just £1
  • Choose terms of one to five years
  • FSCS protection up to £85,000

Compare fixed rate bonds from top providers

You'll only find results from genuine companies. Our data experts check each company before we add them to our comparisons.

Raisin UK
Investec
Paragon
RCI Bank
Aldermore
Leeds Building Society

How to find the best fixed bond rates

Before you start comparing our best bond rates, ask yourself the following questions ...

1

Can you access your money?

Some fixed-rate bonds don't let you access your cash until the end of the term, so you need to check the small print of each bond carefully.

2

How high is the interest rate? 

Once you've found a bond with a suitable term, look at the interest rate. The higher the interest rate, the more money you will ultimately earn.

3

How much can you save? 

Make sure you check how much you need to open your chosen fixed-rate bonds. Some can be opened with as little as £1, but others require thousands.

4

How often should interest paid?

The best fixed-rate bonds let you choose to have interest paid annually or monthly. This may be important if you want the interest to provide a regular income.

Fixed-rate bond deals

25 results found, sorted by shortest term. How we order our comparisons. Commission earned affects the table's sort order.
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My Community Bank 1 Year Fixed Term Deposit
Term
1 year
Account type
Fixed rate bond
Open with
£1,000
Interest rate
2.98% AER fixed
Protection scheme
FSCS
My Community Bank 1 Year Fixed Term Deposit
Retired persons require membership of The Co-Op, National Trust, some Trade Unions.
Withdrawals are not permitted during term.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£1,0002.98%2.98%2.98%2.98%
Eligibility
Maximum Initial Deposit£85,000
Minimum Initial Deposit£1,000
Minimum Age18 years
Permanent UK Resident
£25 Welcome Bonus. T&Cs apply.
Raisin UK Gatehouse Bank 1 Year Fixed Term Deposit
Term
1 year
Account type
Fixed rate bond
Open with
£1,000
Interest rate
2.95% EPR (gross p.a.)
Protection scheme
FSCS
Raisin UK Gatehouse Bank 1 Year Fixed Term Deposit
No withdrawals or closure permitted during the term of the account.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£1,0002.95%2.95%2.95%2.95%
Eligibility
Minimum Initial Deposit£1,000
Minimum Age18 years
Permanent UK Resident
Most Transparent Savings Provider - Moneynet Personal Finance Awards (2022)
Investec 1 Year Fixed Rate Saver
Term
1 year
Account type
Fixed rate bond
Open with
£5,000
Interest rate
2.9% AER fixed
Protection scheme
FSCS
Investec 1 Year Fixed Rate Saver
No withdrawals or closure permitted during the term of the account.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£5,0002.9%2.9%2.9%2.9%
Eligibility
Maximum Initial Deposit£250,000
Minimum Initial Deposit£5,000
Minimum Age18 years
Permanent UK Resident
£25 Welcome Bonus. T&Cs apply.
Raisin UK - QIB UK Bank - 18 Months Fixed Term Deposit
Term
18 months
Account type
Fixed rate bond
Open with
£1,000
Interest rate
2.95% EPR (gross p.a.)
Protection scheme
FSCS
Raisin UK - QIB UK Bank - 18 Months Fixed Term Deposit
£25 bonus when you deposit £10,000 or more into your first savings account with Raisin UK. Term length must be min 6 months, or for an easy access account your balance must remain at or above £10,000 for the first 6 months. Withdrawal conditions apply.
No withdrawals or closure permitted during the term of the account.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£1,0002.95%2.95%2.95%2.95%
Eligibility
Minimum Initial Deposit£1,000
Minimum Age18 years
Permanent UK Resident

What are fixed-rate bonds?

A fixed-rate bond is a type of savings account that holds your money for a set period of time, known as the term. You're paid a fixed interest rate on the amount you have in the bond for the duration of the term. Fixed-rate bonds are also known as savings bonds.

You usually get higher interest rates with bonds than you do with an easy-access account. However, unlike ordinary savings accounts, most bonds don't let you add money little by little: you need to deposit all the money you want to invest in one go.

What types of fixed-rate bonds are available?

There are two main types of fixed-rate bonds:

Fixed-rate savings bonds

These give you a fixed interest rate for the term of the bond, so you always know how much you will receive.

Tracker-rate bonds

The interest rate for these is pegged at an agreed level above the Bank of England base rate.

You can find the right bond rates for your financial goals by comparing the best fixed-rate bonds using comparison tables like the one shown above.

What term lengths can I get with fixed-rate bonds?

Here are the typical term lengths offered and the interest you may be able to earn.

Term length Interest rates (up to)Early withdraw penaltyMinimum investment
1 year1.45%No interest£1
2 year1.60%No interest£1
3 year1.85%No interest£1
5 year2.20%No interest£1
Data correct as of February 2022

How is interest paid on fixed-rate bonds?

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

With most fixed-rate bonds, interest is calculated each year and automatically reinvested in the bond, adding to the initial amount invested. In financial speak, they offer "compounded interest", meaning you earn interest on a growing sum of money as time goes on.

clock

What happens when the term of your fixed-rate bond ends?

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 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 make a decision.

How to cash-in matured fixed-rate bonds

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.

Do you have to pay tax on interest earned?

Any interest you earn from a fixed-rate bond that is in excess of your Personal Savings Allowance will be taxable.

For the 2021/2022 tax year, the Personal Savings Allowance for basic-rate taxpayers is £1,000 and £500 for higher-rate taxpayers.

However, those earning £17,570 or less in the same 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.

Pros and cons of investing in fixed-rate bonds

  • 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 with a fixed interest rate even if they rise elsewhere during the term of the bond

  • You have to pay in a lump sum

Are fixed-rate bonds covered by FSCS?

Most savings providers are registered with the Financial Services Compensation Scheme (FSCS), which protects any 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.

Are there any alternatives to savings bonds?

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.

Fixed rate bond FAQs

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Why compare fixed rate bonds with money.co.uk?

Comparing 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.

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Last updated: 15 July 2022