Fixed Rate Savings Commentary

Latest fixed rate bond rates

James Caldwell / 17 May 2012

For those looking to get a better deal from their cash and who are prepared to tie up capital for a set term, savers should give fixed rate savings bonds a closer look. Fixed rate bond deals are cha... Read more

Inflation linked or fixed rate savings

Oliver Roylance-Smith / 12 December 2011

To help savers find a solution to rising inflation and low interest rates, Oliver Roylance-Smith, head of savings and investment at Fair Investment, weighs up the pros and cons of inflation lin... Read more

Savings map shows higher savings plans for many in 2011

Paul Dicken / 15 January 2011

Many savers are more ambitious about their savings plans in 2011 after a difficult 2010, a map of British saving habits produced by HSBC shows. The data compiled by HSBC shows Britons struggled to i... Read more

Post Office Fixed Rate Bond

Compare Post Office Fixed Rate Bonds

With a Post Office fixed rate bond, you can lock your money away and earn guaranteed returns on your investment. See below to compare our selection of Post Office fixed rate bonds, - choose from 1, 2 or 3 year fixed rates, or compare a wide range of other fixed rates that could help your money grow:

Post Office Fixed Rate Bonds
ProviderAccountInterest Rate (AER)TermApply
3.63%2 YearsApply Now >
A rate of 3.63% Gross/AER fixed for 2 years. Deposit from £500. No additional withdrawals or deposits.
3.27%1 YearApply Now >
A rate of 3.27% AER fixed for 1 year. Deposit from £500. No additional withdrawals or deposits.

Features of the Post Office fixed rate bond:

  • Great level of fixed rate interest
  • Choose your own term - 1, 2 or 3 years
  • Save from £500-£2million
  • No withdrawals but you can close it subject to a charge

Apply online for Post Office fixed rate bonds, or compare other leading deals to find the right one for you.

Fixed Rate Bond Selection
ProviderAccountInterest Rate (AER)TermApply
4.26%5 YearsApply Now >
Earn 4.26% gross/AER fixed for 5 years. Save £1,000 - £250,000. No withdrawals during the term. Individual or joint accounts available. Annual or monthly interest.
3.72%3 YearsApply Now >
A rate of 3.72% Gross/AER fixed for 3 years. Deposit from £500. No additional withdrawals or deposits.
3.63%2 YearsApply Now >
A rate of 3.63% Gross/AER fixed for 2 years. Deposit from £500. No additional withdrawals or deposits.
3.27%1 YearApply Now >
A rate of 3.27% AER fixed for 1 year. Deposit from £500. No additional withdrawals or deposits.
Short Term Fixed Rate Bonds (0-2 years)
ProviderAccountInterest Rate (AER)TermApply
3.63%2 YearsApply Now >
A rate of 3.63% Gross/AER fixed for 2 years. Deposit from £500. No additional withdrawals or deposits.
3.27%1 YearApply Now >
A rate of 3.27% AER fixed for 1 year. Deposit from £500. No additional withdrawals or deposits.
2.80%18 MonthsApply Now >
18 Month Fixed Rate - 2.80% AER. Open to new and existing customers. Click to learn more.
2.50%9 MonthsApply Now >
9 Month Fixed Rate - 2.50% AER. Open to new and existing customers.
up to
2.26%		6 MonthsApply Now >
Earn 2.26% Goss/AER fixed on balances of £50,000 or more. 2.01% Gross/AER fixed on balances of £1-£49,999. Only available to Nationwide FlexAccount holders.
Medium Term Fixed Rate Bonds (3-4 years)
ProviderAccountInterest Rate (AER)TermApply
3.72%3 YearsApply Now >
A rate of 3.72% Gross/AER fixed for 3 years. Deposit from £500. No additional withdrawals or deposits.
3.61%3 YearsApply Now >
Earn 3.61% gross/AER fixed for 3 years. Save £1,000 - £250,000. No withdrawals during the term. Individual or joint accounts available
3.50%3 YearsApply Now >
Interest paid annually at 3.50% (gross), quarterly at 3.45% (gross), or monthly at 3.44% (gross). Minimum Deposit £10,000.
Long Term Fixed Rate Bonds (4+ years)
ProviderAccountInterest Rate (AER)TermApply
4.26%5 YearsApply Now >
Earn 4.26% gross/AER fixed for 5 years. Save £1,000 - £250,000. No withdrawals during the term. Individual or joint accounts available. Annual or monthly interest.
4.00%5 YearsApply Now >
Interest paid either Annually at 4.00% Gross/AER, Quarterly or Monthly interest also available. Minimum Deposit £10,000.
Alternatives to Fixed Rate Bonds
ProviderPlanDeposit TakerPotential ReturnTermMore Info
FTSE 100 3 Year Deposit Plan Investec Bank plc17.25%3 yearsMore Info >
3 year capital protected deposit plan with the potential to receive a defined return of 17.25%. Also available for Cash ISA and Cash ISA transfer.
Deposit Kick OutRoyal Bank of Scotland plc9.50%
per annum		Up to 6 yearsMore Info >
A 6 year structured deposit plan with the potential to mature early, paying 9.50% for every year the plan is in place. Also available for Cash ISA and ISA transfer.
Income Deposit PlanRoyal Bank of Scotland plc7.00%
per annum		6 YearsMore Info >
A 6 year capital protected structured deposit plan with the potential to pay 7% annual income. Backed by the Royal Bank of Scotland. Also available as a cash ISA and for ISA transfer.
FTSE 100 Kick Out Deposit Plan - Option 2Investec Bank plc6.00%
per annum		Up to
5 years		More Info >
Capital protected deposit plan with the potential to mature after years 2, 3, 4 and 5. If the plan matures early it will return 6% times the number of years the plan has been in force. Also available for Cash ISA and Cash ISA transfer.
FTSE 100 Deposit Growth PlanInvestec Bank plcNo limit5 yearsMore Info >
5 year capital protected structured deposit plan which aims to return 1.05 x any FTSE 100 growth. Also available for Cash ISA and Cash ISA transfer.
Growth Deposit BondCater Allen50%6 yearsMore Info >
6 year capital protected structured deposit plan which returns the greater of 9.00% or 1 x any FTSE 100 growth, capped at 50%. Also available for Cash ISA and Cash ISA transfer.
Enhanced Growth PlanSantander UK plc40%6 yearsMore Info >
6 year capital protected structured deposit plan which aims to return 4 x any FTSE 100 growth capped at 40%. Also available for Cash ISA and Cash ISA transfer.
Annual Locked-In Return PlanSantander UK plc39%6 yearsMore Info >
6 year capital protected structured deposit plan which aims to return 6.50% annual growth capped at 39%. Also available for Cash ISA and Cash ISA transfer.

These are structured deposit plans and are capital protected. There is a risk that the company backing the plans or any company associated with the plans may be unable to repay your initial investment and any returns stated. In this event you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS) , depending on your individual circumstances. In addition, you may not get back the full amount of your initial investment if the plans are not held for the full term.

If you are at all unsure of the suitability of these types of investments, both in respect of their objectives and risk profiles, you should seek independent financial advice.

Fixed Rate Bonds – Our view

 

What are fixed rate bonds?

 

Fixed rate bonds are a form of savings account which offer you a guaranteed interest payment over a fixed period of time. The longer the period of time generally the higher the interest payment paid.

 

Advantages

  • The interest rate offered is guaranteed for the term of the bond. This is unlike instant access savings accounts where the interest rate can go down or up at short notice.
  • Different banks and building societies will have different views on medium to long term interest rates. If interest rates rise more slowly than expected a fixed rate bond may give you a better return than what you could expect from an instant access account.
  • Some fixed rate bonds provide flexibility e.g. 1 withdrawal over the term.
  • Fixed rate bonds range from 2 months to 5 years in duration so you can choose a term that suits your circumstances
  • Many fixed rate bond providers offer online access so you can see how much interest you are earning.

 

Disadvantages

  • The benefit of enjoying a higher rate of interest must be weighed against tying up your capital for a fixed term. If you need access to your capital before maturity this may not be possible and if it is there may be interest penalties.
  • If interest rates rise over the term of the investment you may find the interest rate on your capital is no longer competitive compared to new offerings in the market.
  • Many fixed rate bond providers require a high minimum deposit e.g. £5,000

 

If you are considering taking out a Post Office Fixed Rate Bond ensure you read the small print off the terms and conditions before you proceed. Shop around to make sure you are getting the best deal for your money.

Fixed Rate Bond Provider Reviews