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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 for trusts

If you are a Trustee looking for the best way to grow the capital of your Trust, then you might want to consider fixed rate bonds.

Providing you are prepared to lock up the Trust’s capital for a period of time, you can access higher rates of interest through a fixed rate bond.

Fixed rate bond features

You can take out a fixed rate bond through a bank or building society. Depending on how long you intend to leave the Trust’s capital untouched, you could select a short term or long term fixed rate bond.

The most popular fixed rate bonds run for 1 year2 years3 years or 5 years. If you are confident that you won’t need the Trust’s capital for a long time, you might want to explore long term fixed rate bonds. This is because the longer fixed rate bonds often have the best interest rates.

You will not be able to access the Trust’s capital once it is in a fixed rate bond.  Although there are some banks that allow you to withdraw the capital or close early, in the event an early withdrawal is made they will charge a penalty; this is usually a number of days’ worth of interest and can significantly reduce the initial capital.

Financial Services Compensation Scheme

Despite the fact that you cannot withdraw capital from a fixed rate bond without a penalty, Financial Services Compensation Scheme (FSCS) provides you peace of mind that your Trust’s capital is safe. The FSCS provides protection for the first £85,000 that is deposited, providing the bank has a banking authorisation.

It is important to note that some banks are part of bigger companies that have multiple banking service providers, which share the same banking authorisation. In this case your Trust’s capital will only be protected for the first £85,000 across all the banking brands within the bigger company.

If you plan on depositing capital in multiple fixed rate bonds with different banks, it is advisable to check that the banks have separate UK banking licences to ensure you benefit from FSCS protection on every bond.

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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