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Two Year Fixed Rate Bonds

Compare Two Year Fixed Rate Bonds

  • Find the best guaranteed rates

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Why compare two year fixed rate bonds with MoneySuperMarket?

We can help you find a great fixed-rate bond to kickstart your savings. 

  • It's quick and simple

    See a wide range of two-year fixed-rate bonds all in one place. 

  • See deals from across the market

    Compare bonds looking at interest rate and minimum and maximum deposits. 

  • Start saving today

    Click directly through to the provider to open your account. 

How does a two-year fixed-rate bond work?

A two-year fixed-rate bond allows you to save a lump sum and get a guaranteed return after 24 months. Here’s how it works:

  • Choose a bond

    Compare rates and maximum and minimum deposits to see what’s right for you. 

  • Deposit a lump sum

    You can open the bond online in a few minutes and make your deposit. 

  • Don't touch your account

    Your savings stay in the bond for two years with penalties for early withdrawal. 

  • Withdraw funds with interest

    When the bond term ends, you’ll receive the money back plus your interest. 


How much can I earn with a 2-year fixed rate bond?

The amount you earn with a two-year fixed rate bond depends on:

  • How much deposit you can save in the bond

  • The fixed interest rate on the bond 

Our table gives some examples of how much you could earn over a two-year period with a fixed rate bond for different savings amounts at different annual fixed interest rates. 

Savings calculator 



Initial deposit

Rate 2%

Rate 2.5%

Rate 3%

£5,000

£5,256

£5,308 

£5,362 

£10,000

£10,512

£10,618 

£10,724 

£15,000

£15,768

£15,926 

£16,086 

*Rates are for illustration purposes only and are not related to actual savings products on MoneySuperMarket. 

What are the pros and cons of a two-year fixed rate bond?

There are a range of things to consider before deciding on a fixed-rate bond. 

  • Tick

    Advantages

    • Fixed rates mean you know what you’ll get back in interest 

    • Savings are protected by government FSCS scheme   

    • Potential good option for those with a large lump sum to save 

    • Some bonds pay monthly or quarterly interest 



  • Cross

    Disadvantages

    • Bond rates can often be lower than investment returns 

    • You can’t access your money early  

    • Not suitable for regular savers 

    • Interest rates could rise after you lock into your fixed rate 



How to choose the best two-year fixed rate bond

A two-year fixed-rate bond could be a great savings option, but first consider the following:

  • What's the interest rate?

    The higher the guaranteed interest rate the larger the return you’ll receive. 

  • What's my deposit amount?

    Each bond will have a minimum and maximum limit for deposits. 

  • Is there a penalty charge?

    Check whether you’ll have to pay a fee if you need your money early. 

  • Online access or an app?

    Check the way you can deposit, view and withdraw your money. 

What happens after the two-year bond period ends?

After two years your bond will have matured. You can either withdraw the funds with the interest you’ve earned or move it to another savings account – even another fixed rate bond. Remember to shop around again for the best interest rates. You don’t have to keep your money with the same savings provider. 

You’ll need to be proactive though or the provider is likely to move your bond to a very low interest account until you make a decision. 

Check savings rates 



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Compare 2 year fixed rate bonds with MoneySuperMarket

MoneySuperMarket allows you to compare two-year bonds quickly and easily. 

  • Check what's available

    Our two-year fixed-rate savings bonds are listed in one place ordered by interest rate. 

  • Filter your options

    Change the length of the bond term to see the most suitable results for you. 

  • Make your deposit

    Once you’ve found the right bond, complete your application online.  

With a fixed-rate savings bond, you choose a bond and deposit a lump sum and don’t touch your savings for an agreed timeframe e.g. two years. Once the two years are up, the bond has ‘matured’ and you can now access your savings. However, with a regular savings account, you put away money on a regular basis, typically every month for a fixed time period, e.g. one year.  

You may be able to withdraw your money before the bond matures, however you’ll likely face a penalty, e.g. an equivalent to 90 days' interest on the money cashed in. 

You might have to pay tax on your savings bond if it’s above your Personal Savings Allowance. 

Interest is normally paid annually on the anniversary of when you opened the savings bond. Interest may be paid quarterly or monthly depending on your provider. 

Yes, there will be a maximum limit, check with your provider for the maximum amount you can deposit. 

You can find interest rates from up to 5.25% on a 2-year fixed rated bond. When comparing with us, you can sort fixed rated bonds by rate to find our most competitive offers.  

You can pay into your fixed rate bond as long as the product is still open to funds, your provider will let you know the deposit end date. 

So how do we make our money? In a nutshell, when you use us to buy a product, we get a reward from the company you’re buying from.

But you might have other questions. Do we provide access to all the companies operating in a given market? Do we have commercial relationships or ownership ties that might make us feature one company above another?

We commit to providing you with clear and informative answers on all points such as this, so we have gathered the relevant information on this page.