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Fixed Rate Bonds

SUPER SAVE WITH A FIXED RATE BOND

  • Better returns from a range of providers

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Why compare fixed rate bonds with MoneySuperMarket?

  • It’s quick and easy

    See all fixed rate bonds available in one place. This includes the interest rate you’ll receive, the term of the bond and the minimum and maximum deposits 

  • Compare from a range of savings providers

    You’ll see savings bonds from leading providers who are all covered by the Financial Services Compensation Scheme – meaning your money is secure 

  • Start saving today

    It’s quick and easy to start saving. It takes just a few minutes to compare fixed rate bonds and open your account online 

What is a fixed rate bond?

A fixed rate bond is a type of savings account that lets you put your money away for a set period of time in return for a fixed amount of interest on your cash.

It means even if the Bank of England’s Bank Rate changes, your interest rate will stay the same. The interest rates paid on fixed term bonds can be attractive, but you won’t be able to access your money for the duration of the bond term without a penalty charge.

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How do fixed rate bonds work?

  • Choose your bond

    Compare the interest rates available and the length of the bond term (usually 1-year, 2-years, 3-years or 5-years, for example) before making your choice.

  • Deposit your money

    Pay at least the minimum deposit into the savings bond. You can’t usually add to your initial deposit at a later date

  • Collect your money with interest

    When the bond matures you can withdraw your money plus the interest it’s earned – which will be at the fixed rate

How much Interest can I earn with a fixed rate bond?

The amount of interest you’ll earn from a fixed rate bond depends on:

  • The interest rate 

  • The length of the term – the bond duration 

The higher the rate and the longer your money is locked away, generally the more interest you’ll earn. The table shows the return you might make, for example, from a £10,000 deposit where interest is added to the bond each year. 

Length of bond

Interest rate

 

1%

2%

2.5%

One year

£10,100

£10,202

£10,253

Three years

£10,304

£10,618

£10,778

Five years

£10,512

£11,051

£11,330

Based on a £10,000 initial deposit – plus compound interest earned over the duration of the fixed savings bond. Interest rates are for illustration purposes only.

How to choose the best fixed rate bonds for you 

Before you select the best fixed rate savings bond for you, there are a number of things to consider:

  • Interest rates

    Higher rates generally lead to better returns 

  • Length of term

    Consider how long you’re prepared to lock your money away

  • Minimum/maximum deposit

    Fixed rate bonds set limits on how much you can deposit

  • Penalty fees

    Check the conditions in case you need to make an early withdrawal

What are the pros and cons of fixed rate bonds?

There are advantages and disadvantages to fixed rate bonds. These include:

  • Tick

    Advantages

    • Guaranteed return at the end of the term

    • Great option for lump sum deposits

    • Easy to manage online or through an app

  • Cross

    Disadvantages

    • No access to your savings for the fixed term

    • Not suitable for regular savings

    • Penalty charges or loss of interest if you need the money early

What are my choices after the fixed term period ends?

When your fixed rate bond matures you have options. You can simply withdraw your lump sum – and the interest if you opted to have that paid into a linked savings account, or close the account.

Alternatively you can choose to move your savings into another account - a fixed rate bond or easy access, for example. Let your provider know what you want to do because if they don’t hear from you they might move the amount to a new bond, which is likely to have a lower or zero interest rate.

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Compare fixed rate bonds with MoneySuperMarket

MoneySuperMarket can help you compare fixed rate bonds all in one place

  • Browse our providers

    Just click the button below to see a list of all our fixed rate savings bond accounts, ordered by highest interest rate

  • Filter and sort

    Let us know your starting balance and preferred term length and we’ll filter accounts to show you what’s available 

  • Click through to provider

    When you find the fixed rate bond you want, click straight to the provider to complete your application online today.

Reporting savings scams

We’re aware some fraudsters are trying to use the MoneySuperMarket brand to trick consumers into handing over money or financial details, by offering fake ISA and savings products with eye-catching rates. The best way to stop these scams is to report them. 

How do I report an ISA scam?

Check out our tips on how to keep you and your family safe from scams.

Phone Action Fraud on 0300 123 2040 to report fraud

Fixed term bonds generally have minimum and maximum opening deposits. Some fixed rate bond accounts can be opened with as little as £1, for example, but typical minimum deposits start at about £500. Maximum deposits can go into millions, but remember only the first £85,000 will be protected by the FSCS (where applicable). You may find the most competitive rates require a larger deposit – although, this isn’t always the case. Once you’ve made your initial deposit you can’t usually add to it at a later date.

You will usually need to be 18 or over to open an account in the UK although there are some accounts which can be opened from the age of 16. Junior accounts may be available to open on behalf of children too. In most cases you will need to be a permanent UK resident for tax purposes. Some accounts are online only meaning you won’t be able to open the account over the phone, in branch or by post. Check directly with the provider you choose for specific conditions.

Thanks to the introduction of the Personal Savings Allowance in 2016, basic rate taxpayers can earn £1,000 of savings interest a year without having to pay tax, while higher-rate taxpayers can earn £500 a year. Additional rate taxpayers are not eligible for the Personal Savings Allowance. If the interest you earn goes above these limits, any tax you owe will usually be collected via the Pay As You Earn (PAYE) system or via your self-assessment tax return – unless you opt for a tax-free fixed rate ISA.

You’re unlikely to lose money on a fixed rate bond, but if savings rates rise while your money is locked away at a lower rate, you could end up feeling you've lost out on interest in better paying savings accounts. You can also face a penalty should you need to withdraw your money early. 

In some cases, you may be able to access your funds before the end of the bond term, but you’ll usually pay a penalty fee – or you’ll lose interest - for doing so. Check the terms and conditions with your savings bond provider before you sign up to avoid any nasty surprises later.  

You can compare savings accounts using a number of factors. These include the interest rates they offer as well as how long the rate will last, the amount you might need to deposit in order to open the account, and how you can access the account. Once you’ve decided which account you want, simply click through and you’ll be taken to the provider’s website.

Not sure what type of account to go for? Our Savings Decision Tree can help you decide.

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.