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5 Year Fixed Rate Bonds

Compare Five Year Fixed Rate Bonds

  • Lock into a great rate

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Why compare five-year fixed rate bonds with MoneySuperMarket?

We can help find the right long-term savings plan for you. 

  • It's quick and simple

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

  • View different bond offerings

    Compare deals based on interest rate and minimum and maximum deposits. 

  • Start saving today

    Click straight through to the provider to open your account and start saving. 

How does a 5 year fixed rate bond work?

With a fixed rate bond you agree to tie up your money for a set period, in this case five years, with a guaranteed interest rate. Cash can’t be touched until the bond matures.  

  • Check available bonds

    Bonds are listed by interest rate and maximum and minimum deposit.  

  • Make a lump sum deposit

    Open your bond online and make a one-off lump sum deposit. 



  • Don't touch it

    Your savings are locked up for five years. A penalty might apply for early withdrawals.  

  • Take your returns

    After five years you can withdraw your cash and interest or move it to a new bond or savings account. 

How much can I earn in a 5 year fixed rate bond?

How much you can earn on your five-year fixed rate bond will depend on: 

  • The annual interest rate on the bond 

  • How much you can deposit into the bond 

Our table compares different deposit sizes and annual interest rates for a five-year fixed rate bond so you can see the typical returns over the term. 

Savings calculator 



Initial deposit

Fixed rate 2.5%

Fixed rate 3%

Fixed rate 3,5%

£5,000

£5,665

£5,808

£5,955

£10,000

£11,330

£11,616

£11,909

£15,000

£16,995

£17,424

£17,864

*Figures in the table are for illustration purposes only and do not relate to products available on MoneySuperMarket. 

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

Thinking about a long-term fixed rate savings bond? Here are some pros and cons to consider before taking the plunge: 

  • Tick

    Advantages

    Returns are guaranteed so you can plan financially 

    Funds are protected by the Financial Services Compensation Scheme 

    Can be a safer option for medium and long-term saving 



  • Cross

    Disadvantages

    Money is locked away for five years and rates could rise 

    May find better returns elsewhere, albeit with extra risk 

    You may have to pay tax on the interest unless it’s in an ISA 



How to choose the best five year fixed rate bond

Before deciding which five-year fixed rate bond to go for, think about the following factors: 

  • What's the interest rate?

    This will determine how much you get back when the bond matures. 

  • What's my deposit?

    The size of your savings pot may be too low or too high for certain bonds. 

  • Are there penalty charges?

    Fixed rate bonds will often charge the saver a fee to withdraw funds early. 

  • Is it easy to manage?

    Logging in online or through an app can be helpful. 

     



What happens after the five year fixed rate period ends?

When the five-year time period finishes your bond will mature.  

Typically your bond provider will write to you to tell you your options. This might include withdrawing your savings and interest, have the money paid into your current account, or you could choose to move the money into a new fixed rate bond (although the rates are likely to be different). 

It is usually sensible to take your money after your bond matures. If you leave the money for a time it is likely to earn little or no interest.  



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Compare 5 year fixed rate bonds with MoneySuperMarket

You can view our wide range of fixed rate bonds quickly and easily, helping you make your decision.  

  • Browse bond providers

    See all our five-year fixed rate savings bonds in one place.  

  • Target your search

    Tell us how long you want to fix your savings rate and how much you want to save.  

  • Open your account

    Made your decision? Click through to the provider to open your account. 

Withdrawing money early should be a last resort as you are likely to be hit with a penalty fee which could wipe out any gains you might have made. If you think you might need the cash early, check the terms and conditions before you apply.  

No, a five-year fixed rate bond lasts for five years and isn’t flexible. If you want to lock your money away for longer then you can move it into another bond on maturity – but the interest rates are likely to have changed. 

The interest rates on offer will depends on the Bank of England’s base rate (prevailing interest rates) and the individual provider. As the base rate rises, bond rates should also rise. It’s always worth searching the market before making a final decision to ensure you’re getting good value. 

The maximum amount you can invest in a five-year fixed rate bond varies depending on the provider. Most providers let you put at least £85,000 into a bond – equivalent to the amount that is protected under the Financial Services Compensation Scheme – although some bonds let you save much more. 

Your cash savings are protected up to the first £85,000 per financial institution as long as the bond provider is part of the Financial Services Compensation Scheme (FSCS). This is a scheme backed by the government in the unlikely event that the bank or building society in question runs into financial difficulty. 

Most fixed rate bond accounts only accept an initial lump sum deposit, but some may remain open to funds for a short time after you open the bond. Check with your provider for the cut-off date for deposits.  

Interest can be paid monthly, quarterly or annually, depending on your provider. You’ll usually collect your returns at the end of the term when you withdraw the cash. Or you can sometimes nominate a separate bank account for the interest to be paid into. 

You work hard to earn your money, and we don’t think you should waste a penny of it paying over the odds on your household bills. That’s why at MoneySuperMarket, we’re on a mission to save Britain money.

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You might be wondering if we work with all the companies in the market, or if our commercial relationships with our partners might make us feature one company above another. We’ve got nothing to hide, and we want to give you clear answers when it comes to questions like these, so we’ve pulled together everything you need to know on this page.