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This comparison simply includes all savings accounts.

Habib Bank Zurich
Fixed Rate Bond Habib Bank Zurich
Min deposit £1000
Term 1 Year
Interest AER 1.85%

Why we like it: Minimum deposit £1000. No withdrawals permitted. Apply online. Eligible deposits covered by UK FSCS.

Masthaven Bank
Flexible Term Saver Masthaven Bank
Min deposit £500
Term 30 Months
Interest AER 2.11%

Why we like it: 30 month term. Interest can be paid monthly or annually. Minimum deposit £500, Maximum deposit £250,000. No withdrawals permitted. FSCS Protected

RCI Bank
Fixed Rate Bond RCI Bank
Min deposit £1000
Term 3 Years
Interest AER 2.31%

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.

Vanquis
Fixed Rate Bond Vanquis
Min deposit £1000
Term 4 Years
Interest AER 2.52%

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

Vanquis
Fixed Rate Bond Vanquis
Min deposit £1000
Term 5 Years
Interest AER 2.70%

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

Fixed rate bonds allow you to earn higher interest than other savings options, such as instant access accounts, in exchange for locking up your savings for a longer period of time. The majority of banks offer a number of fixed rate bonds ranging from 1 year2 years3 years or 5 years. It should be noted that longer fixed rate bonds offer the highest interest.

Fixed rate bonds for over 65s

In January 2015, the government launched a type of fixed rate bond aimed at those over 65. The bond was created to encourage more people to put money aside for their retirement. The over 65s fixed rate bond, also known as the pensioner bond, was promised to have competitive returns of 2.8% for the one year bond and 4% for the three year bond.

Initially, you could deposit between £500 and £10,000 on each bond. There was no cooling off period. This meant that as soon as you deposited your money, you were unable to withdraw any of your savings from the bond without a 90 days’ interest penalty.

If you are over 65 and looking for a fixed rate bond, you will no longer be able to get this special government released bond and you should review the fixed rate bonds on the market.

Fixed rate bonds available

There are other fixed rate bonds available and the market leading bonds can be found in the table above.

It should be noted that if you deposit your savings into a fixed rate bond, you will not be able to make a withdrawal until the end of the term. Some banks do offer the option to withdraw from the bond early, but this will usually require written notice and will result in a potentially large penalty.

Latest news

Pensioner Bond Maturity - 5 Ideas For Your Cash

From January 2018 over 900,000 people who invested in pensioner bonds will start to see their bonds mature. Savers who have been enjoying 4% pa are going to get a shock when they look for comparable returns from cash in the current market. We have put together 5 ideas for your cash in 2018

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