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Compare 5 Year Fixed Rate Bonds

Vanquis
Fixed Rate Bond Vanquis
Min deposit £1000
Term 5 Years
Interest AER 2.35%

Why we like it: Minimum deposit £1,000. Interest paid monthly or annually. Apply online. Eligible deposits covered by UK FSCS.

Axis Bank
Fixed Rate Bond Axis Bank
Min deposit £1000
Term 5 Years
Interest AER 2.16%

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

Vanquis
Fixed Rate Bond Vanquis
Min deposit £1000
Term 4 Years
Interest AER 2.10%

Why we like it: Minimum deposit £1,000. Interest paid monthly or annually. Apply online. Eligible deposits covered by UK FSCS.

Masthaven Bank
Fixed Rate Bond Masthaven Bank
Min deposit £500
Term 5 Years
Interest AER 2.06%

Why we like it: 5 year term. Interest can be paid monthly or annually. Minimum deposit £500, Maximum deposit £250,000. No withdrawals permitted. FSCS Protected

Aldermore
Fixed Rate Bond Aldermore
Min deposit £1000
Term 5 Years
Interest AER 2.00%

Why we like it: Minimum deposit £1,000 - No withdrawals permitted - FSCS Protected

Masthaven Bank
Flexible Term Saver Masthaven Bank
Min deposit £500
Term 4 Years
Interest AER 1.98%

Why we like it: 4 year term. Interest can be paid monthly or annually. Minimum deposit £500, Maximum deposit £250,000. No withdrawals permitted. FSCS Protected

Aldermore
Fixed Rate Bond Aldermore
Min deposit £1000
Term 4 Years
Interest AER 1.85%

Why we like it: Minimum deposit £1,000 - No withdrawals permitted - FSCS Protected

Is a 5 year fixed rate bond right for you?

For smaller amounts of money, a current account is likely to offer the best rate of interest. Right now, TSB are offering 3% AER on the TSB current account for deposits up to £1,500, while Santander pay 1.5% AER up to a £20,000 limit.

If you want to earn interest on an amount of money greater than the limit on your current account, however, a fixed rate bond is usually your best option. Fixed rate bonds provide a guaranteed return on the amount you deposit and usually allow you to claim interest up to a much higher limit than most current accounts.

Fixed rate bonds can be set up without affecting your existing current account, meaning you can start making your money work harder for you without disrupting your regular banking processes.

5 year fixed rate bonds are aimed at customers who have no immediate need for their savings and generally offer much better rates of interest than shorter term bonds. They are also a great way to maintain the value of your savings relative to inflation.

Compare 5 year fixed rate bonds

Below is our pick of the most popular and competitive 5 year fixed rate bonds. The interest rates you can receive change over time, so please check the table above for the latest rates.

Vanquis 5 Year Fixed Rate Bond

Market leaders Vanquis Bank offer very competitive rates on deposits from £1,000 to £250,000. You can receive your interest monthly, yearly or at maturity and access to the account is online only.

UBL 5 Year Fixed Rate Bond

Another market leader, United Bank Ltd (UBL) also offer highly attractive rates with a minimum deposit of £2,000. Again, you can take your interest monthly, yearly or at maturity and access is online only.

Good to know

  • To qualify for a UBL fixed rate bond you must have an existing UK bank or building society account.

Vanquis 4 Year Fixed Rate Bond

If you don’t want to commit to a full 5 year bond, Vanquis also offer a 4 year fixed rate bond. This has the same conditions as their 5 years bonds, although with a slightly lower rate of interest.

Other fixed rate bonds

Taking out a 5 year bond is a big commitment as you won’t be able to access your money for a long time. If you are concerned about locking up your funds for that long, a 1 year, 2 year or 3 year fixed rate bond could be an easier choice while still offering a decent return.

Many bonds allow you to automatically rollover your deposit into a new bond when the current one reaches maturity. This means shorter term bonds can still offer a long-term return while offering you more flexibility with you savings.

Find 5 Year Fixed Rate Bond Best Buys

Putting your money into a 5 year fixed rate bond is a significant commitment, so you need to be sure you have carefully considered all of the available options before making a choice. Be clear exactly what you want to get from your investment before you start comparing different bonds and you are much more likely to end up with a deal that works for you.

Latest news

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