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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.

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.

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.

Due to the record low interest rates offered in the majority of savings accounts, more and more people are forced to consider locking up their savings for longer periods of time to receive higher interest.

Fixed rate bonds offer higher interest rates in exchange for tying up savings for a longer period of time. Typically, the term of a fixed rate bond can vary from  1 year2 years3 years or 5 years. As a general rule, longer fixed rate bonds offer the highest interest.

Personal Savings Allowance

A concern for many, looking to receive a significant amount of interest on their savings, is the amount of tax they may have to pay on the interest they receive.

In April 2016 a new Personal Savings Allowance was introduced, which meant that basic rate tax payers receive their first £1,000 on their savings tax free and high rate taxpayers can receive their first £500 of interest tax free.

Therefore, if you are unlikely to earn more than £1,000 in interest, you will be able to explore the many fixed rate bonds on the market and not have to worry about paying tax on your interest.

Cash ISAs

If your savings will earn more than £1,000 in interest over the course of a year, it may be prudent to consider putting your savings into a cash ISA.

Cash ISAs allow you to earn tax-free interest up to a certain yearly limit. The 2017/2018 tax year limit is £20,000. This may be an attractive prospect if you have a large amount of savings and are likely to earn a significant amount of interest on your savings.

It should be noted that cash ISAs do not always have the highest interest rate, however the prospect of tax-free interest may make up for the lower rate.  

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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