Fixed Rate Bonds

Selected Top UK Fixed Rate Bonds

Account
QIB UK Bank 3 Year Fixed Rate Bond
Interest Rate
1.77%
Gross/AER
Term
3 Years
Minimum Deposit
£1,000

Compare Market Leading Savings Plans

Account
Investec Bank 1 Year Fixed Rate Bond
Interest Rate
1.33%
Gross/AER
Term
1 Year
Minimum Deposit
£5,000
Account
QIB UK Bank 2 Year Fixed Rate Bond
Interest Rate
1.50%
Gross/AER
Term
2 Years
Minimum Deposit
£1,000
Account
QIB UK Bank 3 Year Fixed Rate Bond
Interest Rate
1.77%
Gross/AER
Term
3 Years
Minimum Deposit
£1,000
Account
IS Bank 4 Year Fixed Rate Bond
Interest Rate
1.50%
Gross/AER
Term
4 Years
Minimum Deposit
£1,000
Account
QIB UK Bank 5 Year Fixed Rate Bond
Interest Rate
2.00%
Gross/AER
Term
5 Years
Minimum Deposit
£1,000
Account
Investec Bank 1 Year Fixed Rate Bond
Interest Rate
1.33%
Gross/AER
Term
1 Year
Minimum Deposit
£5,000
Account
Oak North Bank 1 Year Fixed Rate Bond
Interest Rate
1.23%
Gross/AER
Term
1 Year
Minimum Deposit
£1,000
Account
FCMB 1 Year Fixed Rate Bond
Interest Rate
1.20%
Gross/AER
Term
1 Year
Minimum Deposit
£1,000
Account
QIB UK Bank 1 Year Fixed Rate Bond
Interest Rate
1.15%
Gross/AER
Term
1 Year
Minimum Deposit
£1,000
Account
Zenith Bank 1 Year Fixed Rate Bond
Interest Rate
1.15%
Gross/AER
Term
1 Year
Minimum Deposit
£1,000
Account
IS Bank 1 Year Fixed Rate Bond
Interest Rate
1.15%
Gross/AER
Term
1 Year
Minimum Deposit
£1,000
Account
Hampshire Trust Bank 1 Year Fixed Rate Bond
Interest Rate
1.10%
Gross/AER
Term
1 Year
Minimum Deposit
£1
Account
Cambridge & Counties Bank 1 Year Fixed Rate Bond
Interest Rate
1.05%
Gross/AER
Term
1 Year
Minimum Deposit
£10,000
Account
Aldermore Bank 1 Year Fixed Rate Bond
Interest Rate
1.00%
Gross/AER
Term
1 Year
Minimum Deposit
£1,000
Account
Access Bank 1 Year Fixed Rate Bond
Interest Rate
0.90%
Gross/AER
Term
1 Year
Minimum Deposit
£5,000
Account
Union Bank 1 Year Fixed Rate Bond
Interest Rate
0.67%
Gross/AER
Term
1 Year
Minimum Deposit
£1,000
Account
RCI Bank 1 Year Fixed Rate Bond
Interest Rate
0.50%
Gross/AER
Term
1 Year
Minimum Deposit
£1,000
Account
ICICI Bank 1 Year Fixed Rate Bond
Interest Rate
0.40%
Gross/AER
Term
1 Year
Minimum Deposit
£1,000
Account
Hodge Bank 18 Month Fixed Rate Bond
Interest Rate
0.45%
Gross/AER
Term
18 Months
Minimum Deposit
£1,000
Account
QIB UK Bank 2 Year Fixed Rate Bond
Interest Rate
1.50%
Gross/AER
Term
2 Years
Minimum Deposit
£1,000
Account
Zenith Bank 2 Year Fixed Rate Bond
Interest Rate
1.42%
Gross/AER
Term
2 Years
Minimum Deposit
£1,000
Account
Charter Savings Bank 2 Year Fixed Rate Bond
Interest Rate
1.41%
Gross/AER
Term
1 Year
Minimum Deposit
£1,000
Account
Aldermore Bank 2 Year Fixed Rate Bond
Interest Rate
1.37%
Gross/AER
Term
2 Years
Minimum Deposit
£1,000
Account
Hampshire Trust Bank 2 Year Fixed Rate Bond
Interest Rate
1.30%
Gross/AER
Term
2 Years
Minimum Deposit
£1
Account
QIB UK Bank 18 Month Fixed Rate Bond
Interest Rate
1.30%
Gross/AER
Term
18 Months
Minimum Deposit
£1,000
Account
Cambridge & Counties Bank 2 Year Fixed Rate Bond
Interest Rate
1.30%
Gross/AER
Term
2 Years
Minimum Deposit
£10,000
Account
Oak North Bank 2 Year Fixed Rate Bond
Interest Rate
1.30%
Gross/AER
Term
2 Years
Minimum Deposit
£1,000
Account
Oak North Bank 18 Month Fixed Rate Bond
Interest Rate
1.27%
Gross/AER
Term
18 Months
Minimum Deposit
£1,000
Account
IS Bank 2 Year Fixed Rate Bond
Interest Rate
1.30%
Gross/AER
Term
2 Years
Minimum Deposit
£1,000
Account
FCMB 2 Year Fixed Rate Bond
Interest Rate
1.25%
Gross/AER
Term
2 Years
Minimum Deposit
£1,000
Account
Hampshire Trust Bank 18 Month Fixed Rate Bond
Interest Rate
1.22%
Gross/AER
Term
18 Months
Minimum Deposit
£1
Account
FCMB 18 Month Fixed Rate Bond
Interest Rate
1.22%
Gross/AER
Term
18 Months
Minimum Deposit
£1,000
Account
Access Bank 2 Year Fixed Rate Bond
Interest Rate
1.11%
Gross/AER
Term
2 Years
Minimum Deposit
£5,000
Account
Cambridge & Counties Bank 18 Month Fixed Rate Bond
Interest Rate
1.10%
Gross/AER
Term
18 Months
Minimum Deposit
£10,000
Account
RCI Bank 2 Year Fixed Rate Bond
Interest Rate
0.90%
Gross/AER
Term
2 Years
Minimum Deposit
£1,000
Account
Hodge Bank 18 Month Fixed Rate Bond
Interest Rate
0.45%
Gross/AER
Term
18 Months
Minimum Deposit
£1,000
Account
ICICI Bank 2 Year Fixed Rate Bond
Interest Rate
0.40%
Gross/AER
Term
2 Years
Minimum Deposit
£1,000
Account
QIB UK Bank 3 Year Fixed Rate Bond
Interest Rate
1.77%
Gross/AER
Term
3 Years
Minimum Deposit
£1,000
Account
IS Bank 3 Year Fixed Rate Bond
Interest Rate
1.75%
Gross/AER
Term
3 Years
Minimum Deposit
£1,000
Account
Zenith Bank 3 Year Fixed Rate Bond
Interest Rate
1.55%
Gross/AER
Term
3 Years
Minimum Deposit
£1,000
Account
Hampshire Trust Bank 3 Year Fixed Rate Bond
Interest Rate
1.40%
Gross/AER
Term
3 Years
Minimum Deposit
£1
Account
Cambridge & Counties Bank 3 Year Fixed Rate Bond
Interest Rate
1.40%
Gross/AER
Term
3 Years
Minimum Deposit
£10,000
Account
Aldermore Bank 3 Year Fixed Rate Bond
Interest Rate
1.40%
Gross/AER
Term
3 Years
Minimum Deposit
£1,000
Account
Oak North Bank 30 Month Fixed Rate Bond
Interest Rate
1.31%
Gross/AER
Term
30 Months
Minimum Deposit
£1,000
Account
FCMB 3 Year Fixed Rate Bond
Interest Rate
1.30%
Gross/AER
Term
3 Years
Minimum Deposit
£1,000
Account
Access Bank 3 Year Fixed Rate Bond
Interest Rate
1.25%
Gross/AER
Term
3 Years
Minimum Deposit
£5,000
Account
RCI Bank 3 Year Fixed Rate Bond
Interest Rate
1.00%
Gross/AER
Term
3 Years
Minimum Deposit
£1,000
Account
ICICI Bank 3 Year Fixed Rate Bond
Interest Rate
0.40%
Gross/AER
Term
3 Years
Minimum Deposit
£1,000
Account
QIB UK Bank 5 Year Fixed Rate Bond
Interest Rate
2.00%
Gross/AER
Term
5 Years
Minimum Deposit
£1,000
Account
IS Bank 5 Year Fixed Rate Bond
Interest Rate
1.58%
Gross/AER
Term
5 Years
Minimum Deposit
£1,000
Account
Cambridge & Counties Bank 5 Year Fixed Rate Bond
Interest Rate
1.55%
Gross/AER
Term
5 Years
Minimum Deposit
£10,000
Account
IS Bank 4 Year Fixed Rate Bond
Interest Rate
1.50%
Gross/AER
Term
4 Years
Minimum Deposit
£1,000
Account
Aldermore Bank 5 Year Fixed Rate Bond
Interest Rate
1.50%
Gross/AER
Term
5 Years
Minimum Deposit
£1,000
Account
Aldermore Bank 4 Year Fixed Rate Bond
Interest Rate
1.45%
Gross/AER
Term
4 Years
Minimum Deposit
£1,000
Account
RCI Bank 5 Year Fixed Rate Bond
Interest Rate
1.20%
Gross/AER
Term
5 Years
Minimum Deposit
£1,000
Account
RCI Bank 4 Year Fixed Rate Bond
Interest Rate
1.10%
Gross/AER
Term
4 Years
Minimum Deposit
£1,000
Account
ICICI Bank 5 Year Fixed Rate Bond
Interest Rate
0.40%
Gross/AER
Term
5 Years
Minimum Deposit
£1,000
Plan Name

MB UK Growth Deposit Plan

Maximum Potential Return
15%
at end of term
Term
6 years
ISA Option

Deposit Taker: Barclays Bank plc

Important Information: This is a structured deposit plan and is capital protected. There is a risk that the company backing the plan or any company associated with the plan 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 plan is not held for the full term.

Plan Name

MB UK Kick Out Deposit Plan

Maximum Potential Return
1.35%
per annum
Term
Up to 6 years
ISA Option

Deposit Taker: Barclays Bank plc

Important Information: This is a structured deposit plan and is capital protected. There is a risk that the company backing the plan or any company associated with the plan 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 plan is not held for the full term.

Compare Fixed Rate Bonds

1 Year Fixed Rate Bonds

Investec Bank are currently offering a 1 year fixed rate of 1.33% AER for deposits of £5,000 or more, whilst Oak North Bank pay 1.23% AER  for deposits of £1,000 or more.

2 Year Fixed Rate Bonds

QIB Bank  offer a rate of 1.50% AER for deposits of £1,000 or more for their 2 year fixed rate bond, whilst Zenith Bank pay 1.42% AER for deposits also of £1,000 or more.

3 Year Fixed Rate Bonds

QIB Bank offer a 3 year rate of 1.77% AER with a minimum deposit of £1,000, whilst IS Bank pay 1.75% AER also for deposits of £1,000 or more.

4 Year Fixed Rate Bonds

Not many Banks provide a 4 year fixed rate. However IS Bank do, offering  1.50% AER  fixed rate with a minimum deposit of £1,000.

5 Year Fixed Rate Bonds

For a 5 year fixed rate QIB Bank  pay 2.00% AER, with a minimum deposit of £1,000, whilst IS Bank offer a 5 year bond paying 1.58% AER for deposits of £1,000 or more.



If you are happy to lock your money away for 5 years or more you may wish to consider alternative options for your cash where your capital is guaranteed but where the return on your money is linked to the performance of the stock market. Structured deposit plans are not for everybody but offer an option to savers who are looking for higher returns.

When trying to save money for the future, there are several options open to cash savers. Options include instant access savings accounts, easy access savings accounts, notice savings accounts, fixed rate bonds and structured deposit plans.

With interest rates at the time of writing at all time lows many savers are looking for a range of best saving plans. For savers who are prepared to tie up capital for a year or more typically higher rates of interest are available from savings providers.

A fixed rate bond is a way of gaining a fixed rate of higher interest on your savings for a fixed period of time, typically between one and five years. Generally speaking the longer your savings can be locked away, the higher the interest rate you can get on your money. Some providers offer fixed rate bonds within a Cash ISA so you benefit from tax free interest returns.

Providers normally have a minimum subscription age of 18 but some providers offer options to younger savers.

Normally there is a minimum commitment for depositing money into a fixed rate bond – usually around £1,000, but this can be more. This makes bonds unsuitable for those who wish to top up a savings account in small increments, as this is not usually possible beyond the first lump sum, therefore could look into alternative savings and investments plans.

Having a fixed term means that bonds have a maturity date at which time you will be contacted by your savings provider and provided with options on how you wish your money to be returned to you – you may be given options of putting the money into a new account in which case you should always shop around before accepting a savings deal offered by an existing provider as the rate of interest may or may not be competitive.

Product providers do not normally allow you to access your money during the term and if they do there are normally conditions which may involve a loss of interest so ensure you read the small print before you sign up. Some fixed interest providers will allow one withdrawal a year without penalties.

Interest paid on your savings is treated as income and you may have to pay tax on it depending on your circumstances. If you don’t pay tax you can receive interest gross if you complete HMRC tax form R85. Some accounts will pay interest gross and it is up to you to declare any tax owed to the Inland Revenue.

Fixed rate bonds are cash deposit based and you will get back your original deposit plus any interest owed unless the bank or building society gets into serious financial difficulty. In the unlikely event that this happens the Financial Services Compensation Scheme would pay compensation of up to £85,000 per account holder per authorised institution.

The length of time that savers choose to deposit their money depends on personal financial time frames and other budget and savings considerations. If you need rapid access to your cash, bonds are possibly not the best savings option – it might be preferable to look at an alternative savings options or just an instant access savings accounts.

Minimum deposits can vary from £500 to over £2000. Make sure that you are happy to part with that amount of money for a longer period of time! It is worthwhile having a five-year plan of projected expenses – such as mortgages, car purchases, or planning for a family or retirement – to ensure that you will not need access to your fixed rate bonds account.

Withdrawals are either not permitted or restrictions will apply. Read the provider terms and conditions so that you know what you are getting into. Some providers for example will allow one withdrawal during the term without penalties.

The payment of interest can also vary- some offer monthly interest, others quarterly or annually, and some only pay at the end of the agreed term. Choose a product that fits in with your requirements for the best rates of high interest.

Tax is payable on interest accrued unless you are a non tax payer in which case you can receive interest gross if you complete HMRC tax form R85. Alternatively it is often possible to take a Cash ISA fixed rate bond (current cash ISA allowance for 2018/19 is £20,000 per individual) from which interest can be taken tax free.

If you have cash ISAs from previous tax years you may be able to transfer to a new Cash ISA provider offering a fixed rate bond cash ISA deal.

Please note that this information is based on current law and practice which may change at any time.

1. Consider all options – from instant access to fixed rate bonds to instant access options – All have advantages and disadvantages when trying to build a nest egg for the future.

2. Check the market – shop around to find the right savings plan for you. Interest rates are changing all the time and deals come and go on a regular basis.

3. Make sure you find a product that works for you –  The choice of bond is dependent on the amount of money you intend to deposit, the fixed rate, and the length of the fixed rate period. Whether you want the account to be operated on an online account basis, postal basis or telephone basis. These should all be taken into consideration before making your choice. Read the savings provider terms and conditions carefully.

4. Read the fine print – determine when the provider is likely to let you access your money, how much notice is required, and if there are any penalties for requesting access before the bond matures.

5. Some deals require you to have the interest paid into a current account – check the small print.

6. Check the small print on how interest is paid –  If monthly or annually this will be need to be declared if you submit a tax return. If interest is paid on maturity this may be useful for tax planning purposes.

7. Many deals require you to have internet access –  Some are offered on a postal or branch basis – check the small print.

8. Check that your money is covered by the Financial Services Compensation Scheme – they will guarantee £75,000 of savings against institutional failure. Most UK banks should have this cover, but Irish banks that do not have a UK arm may not be covered by the FSCS.

9. Check what happens when your savings product matures – Providers will write to you when your account matures; if you do not respond the provider will often put your savings into a low or no interest holding account until you provide instructions on what you want to do with the money. It is therefore important to diarise the maturity of your bond and have in mind what you want to do with the money.

10. What is the tax treatment if you are a non taxpayer – If you are not a tax payer many providers will pay interest gross on submission of the relevant HMRC tax form.

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  Important information: Financial planning advice is likely to include stock market-based investments. These are not like bank and building society savings accounts: your capital is at risk and you may get back less than you invested. The value of your investments and any income from them may fall as well as rise. Pensions are long term investments and your eventual income will depend upon the size of the fund at retirement, future interest rates and tax legislation. IHT thresholds depend on your individual circumstances and prevailing legislation, both may change in future