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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 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.

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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Simplysavingsaccounts.co.uk is a trading style of Fair Investment Company Ltd.

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