This comparison simply includes all savings accounts.
AA Fixed Rate Bonds
Why we like it: 9 month term, minimum deposit £1,000, no withdrawals permitted. FSCS Protected
Why we like it: 1 year term, minimum deposit £1,000, no withdrawals permitted. FSCS Protected
Why we like it: Interest paid on maturity. Automatic repayment to your linked account. Maximum deposit £250,000. FSCS Protected. Must have a UK residential address and be aged 18 or older. No withdrawals permitted
Why we like it: Minimum deposit £1,000 - No withdrawals permitted - FSCS Protected
Why we like it: MARKET LEADING 2 YEAR FIXED RATE BOND. Which? Recommended Savings Provider. Save from £1,000 to £250,000. No withdrawals before the end of the term. Your eligible deposits with RCI Bank UK Limited are protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS)
Why we like it: Minimum deposit £1,000 - No withdrawals permitted - FSCS Protected
Why we like it: MARKET LEADING 3 YEAR FIXED RATE BOND. Which? Recommended Savings Provider. Save from £1,000 to £250,000. No withdrawals before the end of the term. Your eligible deposits with RCI Bank UK Limited are protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS)
Why we like it: Minimum deposit £1,000 - No withdrawals permitted - FSCS Protected
Why we like it: Which? Recommended Savings Provider. Save from £1,000 to £250,000. No withdrawals before the end of the term. Your eligible deposits with RCI Bank UK Limited are protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS)
Why we like it: Minimum deposit £1,000 - No withdrawals permitted - FSCS Protected
Why we like it: Which? Recommended Savings Provider. Save from £1,000 to £250,000. No withdrawals before the end of the term. Your eligible deposits with RCI Bank UK Limited are protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS)
Why we like it: Minimum deposit £1,000 - No withdrawals permitted - FSCS Protected
Is an AA fixed rate bond right for you?
Fixed rate bonds let you earn a guaranteed level of interest on your savings in exchange for locking your money away for the term of the bond. For smaller sums, it is usually better to keep your money in a savings account as these generally offer better rates of interest, but only up to a certain deposit limit.
For example, RCI Bank and Post Office are offering 1.30% on their savings accounts.
Fixed rate bonds will generally have a much higher maximum threshold on which they pay interest and can be set up in parallel with your current account, so should not affect your day-to-day banking.
Commonly, fixed term bonds will run for 1 year, 2 years, 3 years or 5 years and the longer the bond runs for, the higher the interest rate it will usually pay. You may have the option to withdraw funds early if necessary, but will usually have to sacrifice some of your interest payments in exchange.
If you have savings which are not currently earning interest, it is worth bearing in mind that they are likely to be decreasing in real world value due to the effects of inflation. Placing your savings in a fixed rate bond can help protect (and usually increases) the value of your money.
Compare AA fixed rate bonds
The AA offer a number of different savings accounts that are deposited with the Bank of Ireland UK. As an alternative to fixed rate bonds, they are currently offering their customers fixed rate ISA, which also offer a guaranteed interest rate in exchange for not being able to access your money for a fixed term.
ISAs differ from fixed rate bonds in that the interest you earn from them is tax-free, up to a yearly limit set by the government. For 202/23 that limit is £20,000. This can make an ISA an attractive option to use for at least part of your savings. Find out more about ISAs here.
Getting the best deal on fixed rate bonds
Exactly which products different institutions provide changes all the time, as well as the interest rates and other features offered with those products. This is a reflection of the ever-changing market and consumer demand.
Our comparison table at the top of the page is regularly updated with all the latest and best deals on fixed rate bonds. This makes it easy to keep track of where you can get the best value for your money right now.
Before investing in a fixed rate bond, make sure you carefully assess your own financial circumstances and the level of return you would like to receive. This should make it much more likely that you will find a product that you are happy with long term.
