23 results found, sorted by shortest term. How we order our comparisons. Commission earned affects the table's sort order.
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Fixed term

Habib Bank Zurich Plc HBZ SIRAT eDeposit Islamic Fixed Term Deposit Account 12 months
Term
1 year
Account type
Fixed rate bond
Open with
£5,000
Interest rate
1.1% EPR (gross p.a.)
Protection scheme
FSCS
This account operates under Shariah principles. It offers an expected profit rate rather than interest. The profit shared is generated from investing in ethical goods and services. T&Cs apply.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£5,0001.1%1.1%1.1%1.1%
Eligibility
Minimum Initial Deposit£5,000
Minimum Age18 years
Permanent UK Resident
Skipton 16 Month Fixed Rate Bond Issue 160
Term
16 months
Account type
Fixed rate bond
Open with
£500
Interest rate
0.65% AER fixed
Protection scheme
FSCS
Interest is paid on the anniversary of account opening and on maturity. Withdrawals not allowed, early closure incurs interest penalty. Check restrictions on paying in.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£5000.65%0.65%0.65%0.65%
Eligibility
Maximum Initial Deposit£1,000,000
Minimum Initial Deposit£500
Minimum Age16 years
Permanent UK Resident

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      Last updated: 20 May, 2021

      What are fixed rate bonds?

      Fixed rate bonds are a type of savings account, and are often known as savings bonds.

      They tie up your money for a set length of time, known as a 'term'. You'll need to be sure you won't need your money during the term. Then, you're paid a fixed interest rate for the duration of the term of your fixed rate bonds.

      You're guaranteed this interest rate until your bonds 'mature', and it's usually higher than what you'd get with an easy access account. That's because the bank knows it has access to your money for a set period of time and you're not suddenly going to withdraw it.

      An important thing to note about fixed rate bonds is that you can often only deposit your money into them once. So you'll need to put it all in in one go.

      What types of fixed rate bonds are available?

      There are two main types of fixed rate bonds:

        When you compare fixed rate bonds, you'll be able to find the best bond rates for your financial goals.

        You might also like to look at another type, called a tax-free fixed rate ISA bond.

        With the best fixed rate bonds, what term lengths can I get?

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

        Updated 20 May 2021
        Term length Interest rates (up to)Early withdraw penaltyMinimum investment
        1 year0.50%No interest£1,000
        2 year1.0%No interest£1,000
        3 year1.25%No interest£1,000
        5 year1.50%No interest£1,000
        7 year1.75%No interest£1,000

        How is interest paid on fixed rate bonds?

        Interest is paid out in two ways:

          Other fixed rate bonds only pay the interest at the end of the term when the bond matures.

          Be aware that 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 20211/22 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.

          What happens when the term our 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 you a few options to think about:

            How to find the best bond rates

            When you're looking for the best fixed rate bonds, there are a few things to think about. Before you start comparing the best bond rates, ask yourself the following questions:

              Are bonds the best fixed rate savings option?

              Usually, fixed rate bonds offer better interest rates than you'd get with other, more accessible, savings accounts. That's the main reason people have fixed rate bonds - because they feel they're the best fixed rate savings option available. You can usually get a decent amount of interest on a large sum of money.

              The other good thing is that you can have as many fixed rate bonds as you like. Just remember that with fixed rate bonds, you often can't take any money out, or put any money in, during the fixed term. And you'll have to stay on top of how much you're earning in interest in case you exceed your Personal Savings Allowance. There's more on this below.

              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.

                How long do fixed rate bonds take to cash?

                The best fixed rate bonds providers should be able to cash in your savings for you quickly. It usually takes about eight days to get your money.

                If your bank gives you the option to have the money put straight into your account, this is usually the best option. It means that if you see a good fixed rate bond account anywhere else, you'll be able to act fast. But, if you're waiting for a cheque, you might not be able to. Most accounts need an immediate deposit when you open them.

                Pros and cons of investing in fixed rate bonds

                Pros

                • Peace of mind
                • Guaranteed interest rate for the term of the bond
                • minimal risk

                Cons

                • 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

                Are fixed rate bonds covered by FSCS?

                Most savings providers are registered with the Financial Services Compensation Scheme (FSCS). This means you can relax knowing your money's protected.

                FSCS protects the customers of financial services firms that go bust. If the company you've been dealing with has failed and can't pay claims against it, FSCS steps in to pay compensation.

                But be careful how much you save with each provider. The protection limit is £85,000 per person per banking license.

                Often many banks operate under a single banking licence, which means that you'll only be covered up to £85,000 in total if you have accounts with different providers under the same license.

                Are there any alternatives to savings bonds?

                Yes, there are alternatives to bank bonds if you want to invest your money. Ideally you should find the best fixed rate savings out there.

                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 Financial Services Compensation Scheme 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

                This can vary from £1 up to £50,000. You can use our table filters to find a savings account based on how much you have to open it with.

                Yes. Just like any savings account, you can open a fixed rate bond online, or by visiting a branch of your preferred bank or building society

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

                Yes, your finances are not checked when you open a savings account. If you need help choosing the right savings account, read this guide.


                About our fixed rate bonds comparison

                Our comparison tables include providers we have commercial arrangements with. The number of listings in our tables can vary depending on the terms of those arrangements, as well as other market developments. They are all from providers regulated by the Financial Conduct Authority (FCA).

                Here is more information about how our website works.

                We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.

                You do not pay any extra and the deal you get is not affected.