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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. 

  • Is there 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.  

When you apply for a mortgage, the lender will assess your affordability by looking at your annual salary and any other income you receive, as well as your outgoings, including credit card and loan debts, household bills, childcare, and general living costs. 

The lender will also check your credit history to see whether you’re a reliable borrower and will then use this and its affordability assessment to decide how much you can borrow. 

The size of your cash deposit towards the home purchase will also have an impact. Mortgage providers usually have a maximum loan-to-value (LTV), or percentage of the property value, they’re prepared to offer.

If, for example, you want to buy a £200,000 property on an 85% LTV mortgage, you’ll need a 15% deposit, which comes to £30,000. 



Yes, you can. But, of course, you’ll need to prove your income in order to take out a mortgage.

It's likely you’ll have to provide at least two years of tax statements or company accounts that have been undersigned by an accountant. If these documents show consistent or increasing profit, you’ll be one step close to securing your first-time buyer mortgage.  



When you’re ready to start viewing properties, it’s a good idea to get a mortgage agreement in principle from one or more lenders.

This will give you a good idea of how much you can borrow. Estate agents may also want to see this to ensure you’re serious about buying. 

Before going ahead with an agreement in principle application, check whether the lender will carry out a credit check. This will usually appear on your credit file.  

An agreement in principle is generally valid for between 30 and 90 days and is an estimate rather than a guaranteed mortgage offer. 



When you buy a property, you might also need to pay various fees and charges upfront. 

It's usually a good idea to instruct a conveyancer or solicitor to help with your purchase, and they'll inform you of the charges you need to pay. 

In some cases, some of the legal fees are included as part of your mortgage but not always.  Extra costs are likely to include: 

You may also need to buy essential items, such as appliances and furniture, and cover the cost of a removal service – or at least a rental van. 



Joint mortgages

If you’re struggling to borrow enough to get onto the property ladder, one way to raise a larger deposit and get a bigger mortgage is to buy a home with your partner or with one or more friends or family members.  

You can take out a joint mortgage as joint tenants, which means all parties own an equal share of the property, or as tenants in common, with which the split can be calculated based on how much each person puts in.   

Either way, it’s a good idea to seek independent legal advice before taking out a joint mortgage to make sure you all agree on what happens to the property should one of you want to sell or leave.  

Shared ownership

If you’re a first-time buyer earning less than £80,000 a year (or £90,000 in London), you could be eligible for a shared ownership mortgage.

With this type of home loan, you buy a percentage of a property – say 25% and pay rent on the rest. 

This can be a good option if you only have a small deposit, as you only have to find say 10% of the value of the share you buy.

You can often increase the share of the property you own when it becomes affordable, while stamp duty can usually be deferred until you own 80%. 

Guarantor mortgages 

A guarantor mortgage is another way to take out a larger mortgage for your first home. With a mortgage of this kind, the guarantor – most likely a parent or close family member – promises to cover the mortgage repayments if you cannot. 

Although the guarantor’s name won’t go on the property deeds, it’s still a good idea to seek independent legal advice before asking someone to guarantee your mortgage – just to make sure everyone understands the rules. 







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.