Fixed interest rate
The interest rate remains the same from when the account is opened until the end of the agreed period
Get higher rates when you lock your money away
Secure your interest rate for a fixed period
All of our providers are FCA regulated
Take a look at our fixed rate bond accounts with the highest interest rates.
Accurate as of Friday, 06 December 2024
Results preview sorted by highest to lowest interest rates - to compare our complete list of savings accounts, including cash ISAs and easy access accounts, view our full results table.
Fixed rate bonds are a type of savings account that lock away your money for a 'fixed' period, from 9 months to five years.
Depending on the provider, interest is paid annually, monthly, or quarterly. You’ll usually collect your returns at the end of the term.
Unlike easy access savers, withdrawing money from fixed rate bonds will result in losing your interest rate - so be sure you don't need access before opening one.
1) Choose your bond: Compare the interest rates available and the length of the bond term before making your choice
2) 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
3) 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
The interest rate remains the same from when the account is opened until the end of the agreed period
The money is locked away for the agreed period of time, which is usually 1, 2, or 3 years, but can also be as long as 5 years
Withdrawals are not permitted during the fixed term
Fixed rate bonds may offer higher interest rates than other savings accounts because the money is less accessible
With interest rates as high as they’ve been for 16 years, but with many experts predicting they may fall in the coming months, it could be a good time to take advantage of fixed-rate bonds.
For example, if you lock your money away in a 6% fixed rate bond for three years, your return will be guaranteed at 6% for the full term – even if interest rates and as a result rates offered on new bonds fall during this period
The longer you agree to lock your money away, the higher the interest rate. If interest rates look like they're falling, it can be a good way of maintaining high interest on your savings. Common terms include:
There are advantages and disadvantages to fixed rate bonds. These include:
Guaranteed return at the end of the term
Great option for lump sum deposits
Easy to manage online or through an app
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
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 |
|---|
| 5% | 5.5% | 6% |
|---|---|---|---|
One year | £10,511.62 | £10,564.08 | £10,616.78 |
Three years | £11,614.72 | £11,789.49 | £11,966.81 |
Five years | £12,833.59 | £13,157.04 | £13,488.50 |
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.
Fixed rate bonds typically have fees associated with early withdrawals:
Early withdrawal penalties: You might be charged a fee if you withdraw money before the fixed term ends. Some providers allow withdrawals with a penalty, while others don't allow withdrawals at all during the term.
Interest: You'll need to pay tax on any interest earned from a fixed rate bond that exceeds your Personal Savings Allowance. However, most people can earn some interest on their savings without paying tax.
Here are some effective ways to manage your fixed rate bond:
Compare interest rates and bond terms to find the best option and pay the minimum deposit into the bond. You can't deposit more once you've bought your bond so consider this before you commit.
Think about how long you can go without accessing the money and consider your personal financial goals, plus, factor in current and future interest rate forecasts.
You can open multiple bonds, and you can split your money between different terms. You can also open other savings accounts in addition to your bonds.
You can't usually withdraw money from a fixed rate bond during its term, but you can access it once the term ends, or when the bond matures.
A fixed rate bond is a savings account where you lock away your money for a set period of time, usually 1–5 years. In exchange, you receive a fixed interest rate that's usually higher than a savings account that allows withdrawals.
When the term ends, your money will move into a Matured Funds Account and you can decide what to do with it.
In some circumstances, you may be able to access your money before the term ends, such as if you're experiencing illness, financial difficulties, or a relationship ending. You can check with your bank to see if this is an option for you.
In the latest Budget, there were no specific measures announced to directly benefit savers.
But despite this, savers will still want to get the best return on their cash. The best interest rates can typically be obtained by locking your cash in a fixed savings account. However, if you don’t feel like you can tie up your money you can opt for an easy access account, which now offer much more competitive rates than in the recent past. You can compare fixed and instant access accounts in one easy place on MoneySuperMarket.
Make sure to check the provider is part of the Financial Services Compensation Scheme, so savings of up to £85,000 are protected. All the providers available through MoneySuperMarket are registered with the FSCS.
Before you select the best fixed rate savings bond for you, there are a number of things to consider:
Higher rates generally lead to better returns
Consider how long you’re prepared to lock your money away
Fixed rate bonds set limits on how much you can deposit
Check the conditions in case you need to make an early withdrawal
When your fixed-rate bond matures you have the option to:
Withdraw your lump sum – and the interest if you opted to have that paid into a linked savings account – and close the account.
Move your savings into another account – a fixed-rate bond or easy access, for example
Important: 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 account, which is likely to have a lower or zero interest rate.
If a cash ISA account isn’t right for you, consider one of these options:
You’ll usually have to save a minimum amount each month, such as £150, to earn the agreed interest rate. But rates tend to be high and you could soon build up a lump sum
With an ISA you’ll benefit from tax-free savings. Save up to £20,000 each tax year. You have a choice between cash ISAs and stocks and shares ISAs – or a combination of both
Easy access savers are a simple way to start saving money, often from as little as £1, and don't penalise you for withdrawing money
MoneySuperMarket can help you compare fixed rate bonds all in one place
Just click the button below to see a list of all our fixed rate savings bond accounts, ordered by highest interest rate
Let us know your starting balance and preferred term length and we’ll filter accounts to show you what’s available
When you find the fixed rate bond you want, click straight to the provider to complete your application online today.
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Check out our tips on how to keep you and your family safe from scams.
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.
While both are types of savings account, the main difference is that the interest rate on a fixed rate bond won’t change. In contrast, the returns on a regular savings account may go up and down as the interest rate fluctuates. You also lock your money away for an agreed period with a fixed rate bond, whereas regular savings accounts give easier access to withdraw the cash.
Fixed rate bonds usually have a short window when you open the account in which you can deposit more savings up to the maximum limit. But they are not designed for regular deposits throughout the term, so check the terms and conditions before you apply.
The FSCS is a UK deposit guarantee scheme that acts as a financial safety net by compensating for lost money due to a provider’s failure or poor financial advice.
If a bank fails, the FSCS automatically compensates up to £85,000 within 7 days.
If your money is held with a UK institution which is regulated by the Financial Conduct Authority (FCA), then you will have access to the Financial Services Compensation Scheme (FSCS) in the event that something goes wrong.
AER stands for 'Annual Equivalent Rate' and shows how much interest you'd earn over the savings account or bond term.
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.
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