Compare 2 Year Fixed Rate Bonds
2 Year Fixed Rate Bonds
Why we like it: Save from £5,000 to £500,000. No additional deposits or withdrawals permitted. FSCS Protected
Why we like it: Save from £5,000. No withdrawals during the term. FSCS Protected
Why we like it: Interest can be paid monthly, quarterly or at maturity - Minimum deposit £1,000 - Maximum deposit £200,000 - No withdrawals permitted - FSCS Protected
Why we like it: Minimum deposit £1,000. Interest paid monthly or annually. Apply online. Eligible deposits covered by UK FSCS.
Why we like it: Minimum deposit £500. Open an account singly or jointly. Interest can be paid monthly or annually. Eligible deposits covered by UK FSCS.
Why we like it: Interest paid at annually. Minimum deposit £1,000. No withdrawals permitted. FSCS Protected
Why we like it: Save from £1,000 to £1,000,000. No withdrawals before the end of the term. RCI Bank are protected up to a total of €100,000 by the FGDR (Fonds de Garantie Dépôts et de Résolution), the French deposit protection scheme. Apply online.
Why we like it: 2 year term. Interest can be paid monthly or annually. Minimum deposit £500, Maximum deposit £250,000. No withdrawals permitted. FSCS Protected
Why we like it: 18 month term. Interest can be paid monthly or annually. Minimum deposit £500, Maximum deposit £250,000. No withdrawals permitted. FSCS Protected
Why we like it: 15 month term. Interest can be paid monthly or annually. Minimum deposit £500, Maximum deposit £250,000. No withdrawals permitted. FSCS Protected
Why we like it: Minimum deposit £1,000 - No withdrawals permitted - FSCS Protected
Is a 2 year fixed rate bond right for you?
Current accounts usually offer the best interest rates on small deposits, with TSB presently offer 5% AER on the TSB current account for deposits up to £2,000, while Santander pay 1.5% AER up to a £20,000 limit.
If your savings are higher than the limit your current account pays interest on, however, you are likely missing out on significant potential returns. Fixed rate bonds provide a guaranteed income for the life of the bond and usually allow you to deposit far more than most current accounts.
Fixed rate bonds let you keep your current account, so you don’t have to worry about rearranging your day-to-day banking, while making sure that all of your money is earning a return.
2 year fixed rate bonds are great if you don’t immediately need access to your savings, but want to keep your options open for the not too distant future. They allow you to earn a good rate of interest on your savings and help maintain the value of your money relative to inflation.
Compare 2 year fixed rate bonds
We have selected our current top picks of the 2 year fixed rate bonds on the market below. Interest rates will change over time, so please check the table above for the latest rates.
Vanquis 2 Year Fixed Rate Bond
Market leaders Vanquis Bank pay good rates of interest on deposits from £1,000-£250,000. Access to your account is online only and you can receive your interest on maturity, annually or monthly.
UBL 2 Year Fixed Term Deposit
Also market leaders are United Bank Ltd (UBL) who require a minimum deposit of £2,000. Access to your account is online only and you can take your interest payments monthly, annually or on maturity.
Good to know
- You must have an existing UK bank or building society account before you apply.
Aldermore 2 Year Fixed Rate Bond
Aldermore Bank offer competitive rates of interest with a minimum deposit of £1,000. You can operate your account online, by phone or by post. Aldermore Bank won Best Online Savings Account Provider at the Your Money Awards 2014.
Good to know
- You can apply for an account online with Aldermore Bank, with the process taking just minutes, including all ID checks.
Other fixed rate bonds
If are unsure about locking your savings away for 2 years, you might be better opting for a 1 year fixed rate bond. These often have the option to automatically rollover your deposit, allowing you to keep earning a return while giving you more flexibility if you need to access your savings sooner.
Alternatively, you could also consider a 3 year or 5 year fixed rate bond as these generally offer a better rate of interest that a 2 year bond.
Find 2 Year Fixed Rate Bond Best Buys
Choosing the best 2 year fixed rate bond for your needs can seem complicated, but if you are clear what you want from your money, you can find some fantastic deals. Carefully compare the different features various providers offer and you should be able to find a good match for your requirements.
