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Our top 2 year fixed rate bonds
Accurate as of 30 September 2026
Results preview sorted by highest to lowest interest rates - to compare our complete list of savings accounts, including cash ISAs and fixed term bonds, view our full results table.
What is a fixed rate bond?
Fixed rate bonds are savings accounts that pay a set interest rate for an agreed period. You pay in a lump sum at the start and, in return, the rate will not change during the term.
What terms can I choose for a fixed rate bond?
Fixed rate bonds commonly run from around six months to five years, although the options vary by provider. One, two, three, and five-year terms are common. Compare the rate as well as the term length. A longer term does not always pay more, and you should only fix money you will not need before the bond matures.
Why consider fixing your savings?
A fixed rate bond gives you certainty: you know the interest rate you’ll receive for the full term. This can be useful if you have a lump sum you will not need before maturity and want to protect yourself if savings rates fall. But it does not guarantee you’ll get the best available rate throughout the term. If savings rates rise after you open the account, you could be locked into a lower rate. Compare fixed and easy-access accounts, and only fix money you can comfortably leave untouched.
How do fixed-rate bonds work?
Choose an account: Compare the interest rate, term, minimum deposit, how interest is paid and the rules for early access.
Make your opening deposit: Fixed rate bonds are designed for a lump sum. Some providers allow a short funding window, but you usually cannot keep adding money throughout the term.
Leave the money for the agreed term: Your rate stays fixed. Access is normally restricted; if early withdrawals are allowed, you may lose interest or pay a penalty.
Choose what to do at maturity: You can usually withdraw the money, move it to another savings account or reinvest it in a new bond.
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:
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Deposit a lump sum
You can open the bond online in a few minutes and make your deposit.
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Don't touch your account
Your savings stay in the bond for two years with penalties for early withdrawal.
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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.
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.
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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
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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:
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What's the interest rate?
The higher the guaranteed interest rate the larger the return you’ll receive.
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What's my deposit amount?
Each bond will have a minimum and maximum limit for deposits.
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Is there a penalty charge?
Check whether you’ll have to pay a fee if you need your money early.
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Online access or an app?
Check the way you can deposit, view and withdraw your money.
Why compare two year fixed rate bonds with MoneySuperMarket?
We can help you find a great fixed-rate bond to kickstart your savings.
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.
Compare 2 year fixed rate bonds with MoneySuperMarket
MoneySuperMarket allows you to compare two-year bonds quickly and easily.
Our expert says…
Amid the broad expectation that savings rates will dip over the next few years in line with the falling base rate, locking your money away for two years and securing a guaranteed return could be a smart financial move. Right now, our top paying two-year fixed-rate bond offers a healthy 5.03%[2] rate of interest. What’s more, you’ll know your money is safe, thanks to the Government-backed Financial Services Competition Scheme, which protects up to the first £120,000 of your money per financial institution.
Kara Gammell Personal Finance & Insurance Expert
Learn more about fixed rate bonds and savings
How does a fixed-rate savings bond differ from a regular savings account?
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.
Can I withdraw my money before the bond matures?
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.
What are the tax implications of earning interest on a 2-year savings bond?
You might have to pay tax on your savings bond if it’s above your Personal Savings Allowance.
How often is interest paid on a 2-year fixed-rate savings bond?
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.
Is there a maximum limit on the amount I can invest in a 2-year fixed-rate savings bond?
Yes, there will be a maximum limit, check with your provider for the maximum amount you can deposit.
What interest rate can I expect on a 2-year fixed rate bond?
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.
Can I add more funds to my fixed-rate savings bond during the term?
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.
What is AER?
AER stands for Annual Equivalent Rate. It shows what the interest rate would be over one year, making it easier to compare savings accounts that pay interest at different intervals. It does not mean every bond term lasts a year.
How we work
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.
Reviewed on 30 Sep 2026 by
Sources and supporting information
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[1]
YouGov Survey 1st July 2024 to 30th June 2025. Net Recommend score derived from “Which of the following online service websites would you recommend to a friend or colleague, or tell them to avoid?” Base: Current Customers of (MoneySuperMarket n=18,382, Compare the Market n=16,802, Go.Compare n=10,162, Confused.com n=8,229, Uswitch n=528).
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[2]
Accurate as of 29 September 2026.
