Fixed rate bonds latest rates Go compare with our comparison table

Fixed rate bonds latest rates

02 October 2012 / by James Caldwell

Based on data published by the building Society Association the average UK branch instant access savings account rate for August 2012 was 0.22% AER while the average branch notice savings account rate was 1.51% AER. For savers prepared to opt for a fixed rate bond the average rate was 2.49% AER. 

If you are comfortable locking your savings away for a fixed period you can get a much better rate of interest on your money and with inflation running at 3.2% (As at July 2012) it pays to shop around for the best deal. See below for a selection of fixed rate bond deals for October 2012.

1 year fixed rate bonds

Virgin Money Bank are currently offering a 1 year fixed rate bond paying 3.00% Gross/AER with deposits from £1.  Cater Allen Private Bank who are owned by Santander UK plc are offering a 1 year fixed rate online account for larger deposits of £50,000 or more at 2.90% Gross/AER.

2 year fixed rate bonds

Cater allen Private Bank are offering a competitive 2 year fixed rate bond is currently market leading at a rate of 3.20% Gross/AER with a minimum deposit of only £50,000. United Bank Ltd are offering a rate of 3.15% Gross/AER for deposits of £2,000 or more.

3 year fixed rate bonds

For a 3 year fixed rate bond term, Cater Allen Private Bank have a market leading rate of 3.71% Gross/AER for deposits from £50,000. Virgin Money Bank for the same term are offering 3.30% Gross/AER for deposits from £1.  

5 year fixed rate bonds

If you are happy to tie up capital for 5 years then Vanquis Bank are paying a rate of 3.71% Gross/AER. Monthly and annual 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 15% 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 02/10/2012.


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

1.80%

per annum

£1,000More Info >
  • Earn 1.80 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.