This comparison simply includes all savings accounts.
Fixed Rate Bonds That Pay Monthly Interest
Why we like it: 9 month 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: 1 year term, minimum deposit £1,000, no withdrawals permitted. FSCS Protected
Why we like it: Market Leading 18 Month Fixed Rate Bond. Interest paid annually. Open in a single or a joint name. Maximum deposit £250,000. FSCS Protected. Winner of Platinum Feefo Trusted Service Award in 2024. Must be UK resident and be aged 18 or older. No withdrawals permitted
Why we like it: Interest paid annually. Open in a single or a joint name. Maximum deposit £250,000. FSCS Protected. Winner of Platinum Feefo Trusted Service Award in 2024. Must be UK resident and be aged 18 or older. No withdrawals permitted
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: Interest paid annually. Open in a single or a joint name. Maximum deposit £250,000. FSCS Protected. Winner of Platinum Feefo Trusted Service Award in 2024. Must be UK resident and be aged 18 or older. No withdrawals permitted
Why we like it: MARKET LEADING 4 YEAR FIXED RATE BOND. Interest paid annually. Open in a single or a joint name. Maximum deposit £250,000. FSCS Protected. Winner of Platinum Feefo Trusted Service Award in 2024. Must be UK resident 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 5 YEAR FIXED RATE BOND. Interest paid annually. Open in a single or a joint name. Maximum deposit £250,000. FSCS Protected. Winner of Platinum Feefo Trusted Service Award in 2024. Must be UK resident and be aged 18 or older. No withdrawals permitted
Why we like it: Minimum deposit £1,000 - No withdrawals permitted - FSCS Protected
Fixed rate bonds that provide monthly interest
Whether putting your money into a fixed rate bond makes sense usually depends on how much money you have to deposit.
Fixed rate bond providers will typically offer a range of interest payment options. Some will offer monthly interest, some quarterly and many will offer annual interest. Some providers will pay out interest on maturity of the bond.
It is worth bearing in mind that if you have savings in your current account not earning interest, then that money is likely to be effectively declining in value in real terms thanks to inflation. Placing your savings into a fixed rate bond is therefore a great way to mitigate inflation over time.
How long should you fix your savings for?
Most fixed rate bonds are offered for 1 year, 2 years, 3 years or 5 years. Some companies also offer 30 month and 4 year bonds, although these are less common. In general, the longer the term of the bond, the higher interest rate you will receive.
Many bonds will allow you to remove funds early if necessary, but you will usually incur some kind of penalty for doing so. This most often involves forfeiting some of the interest you would otherwise have earned. This means if you are going for a longer term bond, you need to be very confident you will not want to access those savings before the bond reaches maturity.
Find the best fixed rate bond that pay monthly interest
Placing your savings into a fixed rate bond can be a big commitment, as it means you won’t have easy access to your money if you later need it. With so many different products on the market, it can also be difficult to know which is the best choice for you.
Before making a decision, be sure you know exactly what you want to get out of your bond and be prepared to shop around to find the best deals. Our fixed rate bond comparison tool above is a great way to keep on top of the current most competitive deals that pay monthly interest.
