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This comparison simply includes all savings accounts.

Vanquis
Fixed Rate Bond Vanquis
Min deposit £1000
Term 5 Years
Interest AER 2.35%

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

The Access Bank UK
Fixed Rate Bond The Access Bank UK
Min deposit £5000
Term 3 Years
Interest AER 2.20%

Why we like it: Save from £5,000 to £500,000. No additional deposits or withdrawals permitted. FSCS Protected

Axis Bank
Fixed Rate Bond Axis Bank
Min deposit £1000
Term 5 Years
Interest AER 2.16%

Why we like it: Interest can be paid monthly, quarterly or at maturity - Minimum deposit £1,000 - Maximum deposit £200,000 - No withdrawals permitted - FSCS Protected

Axis Bank
Fixed Rate Bond Axis Bank
Min deposit £1000
Term 3 Years
Interest AER 2.16%

Why we like it: Interest can be paid monthly, quarterly or at maturity - Minimum deposit £1,000 - Maximum deposit £200,000 - No withdrawals permitted - FSCS Protected

Vanquis
Fixed Rate Bond Vanquis
Min deposit £1000
Term 4 Years
Interest AER 2.10%

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

The Access Bank UK
Fixed Rate Bond The Access Bank UK
Min deposit £5000
Term 2 Years
Interest AER 2.00%

Why we like it: Save from £5,000 to £500,000. No additional deposits or withdrawals permitted. FSCS Protected

Wyelands Bank
Fixed Rate Bond Wyelands Bank
Min deposit £5000
Term 2 Years
Interest AER 2.00%

Why we like it: Save from £5,000. No withdrawals during the term. FSCS Protected

Masthaven Bank
Flexible Term Saver Masthaven Bank
Min deposit £500
Term 30 Months
Interest AER 1.85%

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

The Access Bank UK
Fixed Rate Bond The Access Bank UK
Min deposit £5000
Term 1 Year
Interest AER 1.85%

Why we like it: Save from £5,000 to £500,000. No additional deposits or withdrawals permitted. FSCS Protected

Wyelands Bank
Fixed Rate Bond Wyelands Bank
Min deposit £5000
Term 1 Year
Interest AER 1.83%

Why we like it: Save from £5,000. No withdrawals during the term. FSCS Protected

Masthaven Bank
Flexible Term Saver Masthaven Bank
Min deposit £500
Term 18 Months
Interest AER 1.70%

Why we like it: 18 month term. Interest can be paid monthly or annually. Minimum deposit £500, Maximum deposit £250,000. No withdrawals permitted. FSCS Protected

Masthaven Bank
Flexible Term Saver Masthaven Bank
Min deposit £500
Term 9 Months
Interest AER 1.30%

Why we like it: 9 month term. Interest can be paid monthly or annually. Minimum deposit £500, Maximum deposit £250,000. No withdrawals permitted. FSCS Protected

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What is an income bond?

An income bond is a type of savings account that allows you to earn a regular income in the form of interest on your savings. Income bonds are popular with those who have a lump sum in savings and want to use this to generate income, such as many pensioners.

Types of income bonds

There are various types of bonds which will allow you to turn your savings in a source of regular income.

Fixed rate bonds

One of the most popular types of bonds for those looking to earn a return on their savings. Fixed rate bonds offer a guaranteed rate of interest in exchange for agreeing not to touch your money for a fixed period – usually 1, 2, 3 or 5 years.

Interest can be taken monthly, giving you a regular income and the fixed rate means that you know exactly what your income will be for the life of the bond. However, because the rate is fixed the amount you earn will not increase in line with inflation.

It’s also worth bearing in mind that if you need to withdraw your money early, you may be hit with a penalty fee. This is usually calculated based on a percentage of the interest you would have earned on the funds withdrawn.

Monthly income bonds

Monthly income bonds allow you to earn monthly interest on your savings, but unlike a fixed rate bond, you can take your money out whenever you need to. The interest rate you get on a monthly income bond will normally be variable, meaning it will go up and down due to inflation and other factors.

Monthly income bonds tend to offer lower interest rates than fixed rate bonds, but are more flexible as you can access your money when you need it and the income you earn will tend to keep pace with inflation.

Latest news

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In these low interest times getting a decent rate of return on your cash is not easy. Surprisingly some of the best interest rates are available via current accounts.

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

We've been comparing savings and current accounts for many years so you can trust you're in good hands.