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.
Fixed-rate bond deals
Raisin UK BNF Bank - 3 Month Fixed Term Deposit
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| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1,000 | 4.91% | 4.91% | 5% | 5% |
| Maximum Initial Deposit | £85,000 |
| Minimum Initial Deposit | £1,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
Raisin UK GB Bank - 3 Month Fixed Term Deposit
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| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1,000 | 4.9% | 4.9% | 4.99% | 4.99% |
| Maximum Initial Deposit | £85,000 |
| Minimum Initial Deposit | £1,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
Hargreaves Lansdown Active Savings Emirates NBD - 3 Month Fixed (29/04/24)
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| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1 | 5% | 5% | 5.09% | 5.09% |
| Maximum Initial Deposit | £10,000,000 |
| Minimum Initial Deposit | £1 |
| Minimum Age | 18 years |
| Permanent UK Resident |
Hampshire Trust Bank 6 Month Bond Issue 10
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| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1 | 5.11% | 5.11% | 5.18% | 5.18% |
| Maximum Initial Deposit | £250,000 |
| Minimum Initial Deposit | £1 |
| Minimum Age | 18 years |
| Permanent UK Resident |
Hampshire Trust Bank 9 Month Bond Issue 13
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| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1 | 5.03% | 5.03% | 5.06% | 5.06% |
| Maximum Initial Deposit | £250,000 |
| Minimum Initial Deposit | £1 |
| Minimum Age | 18 years |
| Permanent UK Resident |
Hargreaves Lansdown Active Savings Emirates NBD - 9 Month Fixed (29/04/24)
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| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1 | 5.05% | 5.05% | 5.1% | 5.1% |
| Maximum Initial Deposit | £10,000,000 |
| Minimum Initial Deposit | £1 |
| Minimum Age | 18 years |
| Permanent UK Resident |
Raisin UK - QIB UK Bank - 1 Year Fixed Term Deposit
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| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1,000 | 5.15% | 5.15% | 5.15% | 5.15% |
| Minimum Initial Deposit | £1,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
Hampshire Trust Bank 1 Year Bond Issue 66
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| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1 | 5.1% | 5.1% | 5.1% | 5.1% |
| Maximum Initial Deposit | £250,000 |
| Minimum Initial Deposit | £1 |
| Minimum Age | 18 years |
| Permanent UK Resident |
Tesco Bank 1 Year Fixed Rate Saver
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| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £2,000 | 5% | 5% | 5% | 5% |
| Maximum Initial Deposit | £5,000,000 |
| Minimum Initial Deposit | £2,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
Investec 1 Year Fixed Rate Saver
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| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £5,000 | 5% | 5% | 5% | 5% |
| Maximum Initial Deposit | £250,000 |
| Minimum Initial Deposit | £5,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
Compare another type of savings
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?
The table below reveals the interest you might earn depending on the typical length of term:
| Term length | Interest rates (up to) | Early withdrawal? | Minimum investment |
|---|---|---|---|
| 1 year | 3.01% | Not permitted | £1 |
| 2 year | 3.3% | Not permitted | £1,000 |
| 3 year | 3.35% | Not permitted | £1,000 |
| 5 year | 3.5% | Not permitted | £1,000 |
How is interest paid on fixed-rate bonds?
Compounded interest
This is the most common way interest is paid on fixed-rate bonds – it’s calculated once a year and reinvested into the bond. “Compounded interest” is financial speak for interest that’s paid on a sum of money that grows over time.
Fixed interest
Some bonds issue a fixed rate of interest, which is paid on a monthly basis. This sum is fixed every month for the duration of the bond. Many people use fixed-rate interest as a form of income and pay it into a separate account.
What happens when the term of your fixed-rate bond ends?
Your bond “matures” at the end of its term. Your provider will get in contact to confirm this around a month before it reaches maturity.
In most cases, your provider will give you a selection of options to choose from. These include
reinvesting all the money in a new bond
setting up a new bond with your existing funds, then adding an additional amount
reinvesting a proportion of the bond and withdrawing the rest
closing your account and cashing in all your savings
Don’t rush into a decision – think carefully about which option works best for you.
How to cash in matured fixed-rate bonds
You can cash in a fixed-rate bond that has matured by following these three simple steps.
Complete the form your bank sends to you
Wait while your bank transfer the money into your account or sends a cheque
Decide whether to invest again
It's a good idea to compare the best fixed-rate bonds along with other types of savings accounts before choosing to reinvest your funds. You could also speak to a financial advisor for further help.
Do you have to pay tax on earned interest?
You only have to pay tax on any interest you have earned if it exceeds your Personal Savings Allowance, which is shown in the following table.
Personal Savings Allowance rates
| Income Tax band | Personal Savings Allowance |
|---|---|
| Basic rate | £1000 |
| Higher rate | £500 |
| Additional rate | £0 |
However, those earning £17,570 or less also qualify for the "starting rate", which could give you up to an extra £5,000 savings allowance depending on your income. Under current rules, those earning £12,750 would be eligible for the full £5,000, but this entitlement decreases by £1 for each additional £1 you earn in income.
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
How much money do I need to open a fixed-rate bond?
In terms of how much money you need to open a fixed rate bond, you can open most fixed rate bonds with as little as £1 and as much as £5,000.
Can I open a fixed rate bond online?
Yes, you can open a fixed rate bond online. Just like any savings account, you can open a fixed-rate bond online, or by visiting a bank or building society branch.
Can I have more than one fixed rate bond?
Yes, you can have more than one fixed rate bond but make sure you keep some money accessible in case of an emergency. Read this guide for help choosing the right savings account.
Can I have a fixed rate bond if I have bad credit?
Yes, you can have a fixed rate bond if you have bad credit as your finances are not checked when you open a savings account. If you need help choosing the right savings account, read this guide.
Explore savings accounts guides
What's the best place for your money?
Knowing what to do with savings can be difficult, especially with inflation so high. Here is what you can do if you have money to invest.
Read MoreWhy 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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¹FSCS explanation on how banking licences affect FSCS protection?
Last updated: 23 September 2022