Compare fixed rate bonds

If you’re looking to invest a lump sum, a fixed rate bond could be perfect. It pays a guaranteed amount of interest for a set length of time. You probably won’t be allowed to access your savings during the fixed term, so invest money you can afford to lock away.

 

Compare short term fixed rate bonds - featured accounts - Ordered by interest rate (AER)

Apply for the accounts below today or see all fixed rate bond accounts

  1. Great for
    Opening with a single deposit from just £500
    Choose when you receive your interest – annually on the anniversary of bond opening or monthly based on the date the bond was opened. Rates vary depending on when you choose to receive interest
    But be aware that
    No additional deposits permitted
    You won’t be able to close your bond unless it’s due to exceptional circumstances and a breakage fee may apply. If the interest you’ve earned doesn’t cover this, you may get back less than you put in.
    Post Office Money ® Online Bond is provided by Bank of Ireland
  2. 2016 SUPERS

    Winner of the Best Savings Account Provider

    Great for
    Simple online application
    But be aware that
    Withdrawals are not permitted within the fixed term

Compare 15 month fixed rate bonds - featured accounts - Ordered by interest rate (AER)

Apply for the accounts below today or see all fixed rate bond accounts

Compare 18 month fixed rate bonds - featured accounts - Ordered by interest rate (AER)

Apply for the accounts below today or see all fixed rate bond accounts

  1. Anticipated Profit Rate

    BLME will only invest your funds into Sharia'a compliant investments

    Great for
    Largest Islamic bank in Europe, regulated by the PRA and FCA with FSCS protection
    BLME will only invest your funds into Sharia’a compliant investments
    But be aware that
    Withdrawals are not permitted within the fixed term

Compare two year fixed rate bonds - featured accounts - Ordered by interest rate (AER)

Apply for the accounts below today or see all fixed rate bond accounts

  1. Great for
    Opening with a single deposit from just £500
    Choose when you receive your interest – annually on the anniversary of bond opening or monthly based on the date the bond was opened. Rates vary depending on when you choose to receive interest
    But be aware that
    No additional deposits permitted
    You won’t be able to close your bond unless it’s due to exceptional circumstances and a breakage fee may apply. If the interest you’ve earned doesn’t cover this, you may get back less than you put in.
    Post Office Money ® Online Bond is provided by Bank of Ireland
  2. 2016 SUPERS

    Winner of the Best Savings Account Provider

    Great for
    Opening and viewing your account online
    But be aware that
    Withdrawals are not permitted within the fixed term
  3. Anticipated Profit Rate

    BLME will only invest your funds into Sharia'a compliant investments

    Great for
    Largest Islamic bank in Europe, regulated by the PRA and FCA with FSCS protection
    BLME will only invest your funds into Sharia’a compliant investments
    But be aware that
    Withdrawals are not permitted within the fixed term

Compare three year fixed rate bonds - featured accounts - Ordered by interest rate (AER)

Apply for the accounts below today or see all fixed rate bond accounts

  1. Great for
    Opening with a single deposit from just £500
    Choose when you receive your interest – annually on the anniversary of bond opening or monthly based on the date the bond was opened. Rates vary depending on when you choose to receive interest
    But be aware that
    No additional deposits permitted
    You won’t be able to close your bond unless it’s due to exceptional circumstances and a breakage fee may apply. If the interest you’ve earned doesn’t cover this, you may get back less than you put in.
    Post Office Money ® Online Bond is provided by Bank of Ireland
  2. 2016 SUPERS

    Winner of the Best Savings Account Provider

    Great for
    Opening and viewing your account online
    But be aware that
    Withdrawals are not permitted within the fixed term
  3. Anticipated Profit Rate

    BLME will only invest your funds into Sharia'a compliant investments

    Great for
    Largest Islamic bank in Europe, regulated by the PRA and FCA with FSCS protection
    BLME will only invest your funds into Sharia’a compliant investments
    But be aware that
    Withdrawals are not permitted within the fixed term

Compare four year fixed rate bonds - featured accounts - Ordered by interest rate (AER)

Apply for the accounts below today or see all fixed rate bond accounts

  1. Anticipated Profit Rate

    BLME will only invest your funds into Sharia'a compliant investments

    Great for
    Largest Islamic bank in Europe, regulated by the PRA and FCA with FSCS protection
    BLME will only invest your funds into Sharia’a compliant investments
    But be aware that
    Withdrawals are not permitted within the fixed term

Compare five year fixed rate bonds - featured accounts - Ordered by interest rate (AER)

Apply for the accounts below today or see all fixed rate bond accounts

  1. Great for
    Guaranteed rate of interest for the term of the investment with interest payable annually or upon maturity
    Sterling denominated
    By depositing your savings with Agribank you are supporting British farmers. Deposits held with Agribank are invested into the British agricultural community
    But be aware that
    Agribank falls under the Maltese Compensation Scheme with the first 100,000 euro of savers' money is protected - equivalent to £72,664 (correct as of 17.12.2015) rather than the usual £75,000 protection currently offered by UK-owned banks
    Withdrawals are not permitted during the term. Investment must be funded from a UK bank account. Minimum investment £5,000.
  2. Great for
    Managing your account online or in branch
    A choice between interest paid monthly, annually or on maturity
    FSCS protected
    But be aware that
    Additional deposits, early account closure and withdrawals are not permitted within the fixed term
  3. Anticipated Profit Rate

    BLME will only invest your funds into Sharia'a compliant investments

    Great for
    Largest Islamic bank in Europe, regulated by the PRA and FCA with FSCS protection
    BLME will only invest your funds into Sharia’a compliant investments
    But be aware that
    Withdrawals are not permitted within the fixed term

Fixed Rate Bonds Guide

What are fixed rate bonds?

Fixed rate bonds are usually savings accounts that pay a set rate of interest, agreed at the outset, for a certain term.

The interest rates available are generally higher than those on easy access accounts – especially if you opt for a fixed rate bond that lasts for two years or more.

You will, however, pay a penalty if you need to make a withdrawal within the fixed term.

Consequently, fixed rate bonds are only suitable for savers who are prepared to lock their cash away for a few years.

Read more

What types of fixed rate bonds are available?

Most banks and building societies offer fixed rate bonds lasting for anything from six months to five years.

You will need to invest a lump sum to benefit, as you cannot generally add to your initial deposit as you might with an easy access account.

To qualify for some of the most competitive accounts, you may need a large amount. Some have minimum deposits of £10,000 or even £25,000.

However, with more than 100 on the market most of the time, you should be able to find good deals that require as little as £1,000.

What are the advantages of fixed rate bonds?

As mentioned above, fixed rate bonds usually pay higher interest rates than easy access savings accounts.

If you have some cash that you do not need access to for say two or three years, you can boost your returns by opting for a fixed rate account. This is particularly true should interest rates fall during the term.

But beware: you may find yourself locked into an uncompetitive rate should rates start to rise while your money is locked away in a fixed rate bond.

This is why shorter-term fixed rate bonds tend to be more popular, despite those lasting longer offering superior rates of return.

Either way, the simplicity of these products makes them a straightforward way to save – particularly if you can afford to keep some rainy day savings in an easy access account.

If you lack discipline, fixed rate bonds are also a good way of ensuring that you leave your nest egg untouched for a certain length of time.

And as long as the bank or building society offering the fixed rate bond is authorised by the Financial Services Authority, the Financial Services Compensation Scheme will cover deposits of up to £75,000 (as of January 2016). Please ensure you check this as some banks and organisations do not offer FSCS cover and therefore there is a risk to your deposit when opting to save your money with that organisation.

Why should you use MoneySuperMarket.com to compare fixed rate bonds?

As with all types of savings accounts, the rates available on fixed rate bonds vary widely. What’s more, the best ones often sell out – or reach their target – within a week or two.

MoneySuperMarket.com allows you to compare the whole fixed rate bond market in a matter of seconds. It also offers information about how to open a fixed rate bond, most of which can be opened online, over the phone or in a branch. You can therefore find the best deal quickly and easily, whether you want an account that lasts for six months or five years.

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