Fixed rate bonds - latest savings deals Go compare with our comparison table

Fixed rate bonds - latest savings deals

15 June 2012 / by James Caldwell

In our current low interest environment in the UK, maximising the interest on your savings requires a proactive approach as many savings providers offer poor value on their savings accounts. Fixed rate bonds offer savers who are happy to tie up capital for a set period the chance to earn more - below is a selection of fixed rate bond deals for June 2012.

1 year fixed rate bonds

United National Bank are currently offering a 1 year fixed rate bond paying 3.45% Gross/AER with deposits from £2,000.  Post Office savings accounts, provided by Bank of Ireland (UK), are offering a 1 year fixed rate online account for deposits of £500 or more at 3.27% Gross/AER.

2 year fixed rate bonds

The Birmingham Midshires 2 year fixed rate bond is currently market leading at a rate of 3.75% Gross/AER with a minimum deposit of only £1. The Post Office are also offering a competitive deal on their 2 year fixed rate bond at 3.63% Gross/AER.

3 year fixed rate bonds

For a 3 year term, Birmingham Midshires also have a market leading rate of 4% Gross/AER for deposits from £1. Withdrawals are permitted subject to a loss of interest. Halifax savings accounts include the 3 year fixed online saver which offers 3.85% Gross/AER for deposits from £500. Halifax are at the time of writing offering savers a chance to win £100,000 in their prize draw.  

4 year fixed rate bonds

Halifax are currently offering a market leading rate on their 4 year fixed rate bond at 4.05% Gross/AER with deposits from £500. No additional deposits can be made on this account and withdrawals are not permitted.

5 year fixed rate bonds

If you are happy to tie up capital for 5 years then Halifax are paying an attractive bond rate of 4.15% Gross/AER. Withdrawals are not allowed. Vanquis Bank are paying 4.06% Gross/AER on their 5 year fixed term deposit account with annual, quarterly and monthly interest options. Minimum deposit of £1,000. 

Click here for a selection of our best fixed rate bonds.

Fixed rate bond alternatives

If you are prepared to tie your money up, there are alternatives to fixed rate bonds known as structured deposit plans which typically have a 3 to 6 year term. These plans are cash based, but they provide the potential of stock market linked returns while protecting your initial deposit. As with fixed rate bonds, these plans are eligible for the Financial Services Compensation Scheme (FSCS) up to £85,000 per person per institution in the event that the deposit taker defaults.

3 Year Deposit Plan

The Investec FTSE 3 Year deposit Plan currently has a target return of 17% on maturity, as long as the FTSE 100 final index level is higher at the end of the term than the initial index level at the start date. If at maturity the final index level is equal or lower you will not recieve the investment return but your original capital will be repaid.

More fixed rate bond alternatives.

* Data accurate as at 15/06/2012.


No news, feature article or comment should be seen as a personal recommendation to invest. If you are in any doubt as to the suitability of a particular investment you should seek independent financial advice.

© Fair Investment Company Ltd

Fixed Rate Bond Selection
ProviderAccountInterest RateTermApply

2.01%

per annum

£1,000More Info >
  • Earn 2.01% gross/AER fixed for 5 years
  • Save from £1,000 - £250,000
  • Monthly and annual interest options
  • Online savings account 
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Must be UK resident and aged 18 or older
  • No withdrawals allowed
  • Bond designed to be held for full term

1.85%

per annum

£1,000More Info >
  • Earn 1.85 gross/AER fixed for 4 years
  • Save from £1,000 - £250,000
  • Monthly and annual interest options
  • Online savings account 
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Must be UK resident and aged 18 or older
  • No withdrawals allowed
  • Bond designed to be held for full term

1.25%

per annum

£1,000More Info >
  • Earn 1.25% AER for deposits between £1,000 and £200,000.
  • Minimum opening balance of £1,000; maximum balance £200,000.
  • Interest paid monthly, quarterly or at maturity
  • Available as a single or joint account
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Must be UK resident and aged 18 or older
  • No withdrawals permitted.

1.20%

per annum

£1,000More Info >
  • Earn 1.20% AER for deposits between £1,000 and £200,000.
  • Minimum opening balance of £1,000; maximum balance £200,000.
  • Interest paid monthly, quarterly or at maturity
  • Available as a single or joint account
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Must be UK resident and aged 18 or older
  • No withdrawals permitted.

1.15%

per annum

£1,000More Info >
  • Earn 1.15% AER for deposits between £1,000 and £200,000.
  • Minimum opening balance of £1,000; maximum balance £200,000.
  • Interest paid monthly, quarterly or at maturity
  • Available as a single or joint account
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Must be UK resident and aged 18 or older
  • No withdrawals permitted.

1.10%

per annum

£1,000More Info >
  • Minimum opening balance of £1,000, up to a maximum balance of £1,000,000
  • Interest paid on maturity
  • Available as a single or joint account
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Must be UK resident and aged 18 or older
  • No withdrawals permitted.

0.80%

per annum

£1,000More Info >
  • Minimum opening balance of £1,000, up to a maximum balance of £1,000,000
  • Interest paid on maturity
  • Available as a single or joint account
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Must be UK resident and aged 18 or older
  • No withdrawals permitted.