What is a fixed rate bond?

A fixed rate bond is another name for a fixed rate saver: a savings account that pays a guaranteed interest rate for a set term, usually between six months and five years. Despite the name, it isn't an investment bond — it's an ordinary FSCS-protected deposit account. Your capital is not at risk and the rate cannot change during the term.

Can I withdraw money from a fixed rate saver early?

Usually not. Most fixed rate savers don't allow any withdrawals until the term ends. Some providers make exceptions for genuine hardship or account closure with a significant interest penalty (often 90–365 days of interest), and fixed rate Cash ISAs must legally allow closure, though penalties still apply. If there's any chance you'll need the money, a notice account or easy access account is a better fit.

What happens when my fixed rate saver matures?

Shortly before maturity your provider will write to you with options: withdraw the money, reinvest in a new fixed term, or do nothing. If you do nothing, most providers move your balance into an easy access account paying far less than the market's best rates — so it's worth comparing rates and giving instructions before the maturity date.

Is a 1 year fixed rate saver worth it?

For most savers with a lump sum they won't touch, yes — one-year fixes typically pay more than easy access accounts and the commitment is short. The main reasons to skip one: you might need the money within the year (fixing money you need is expensive or impossible to undo), or you'd rather stay flexible because you expect rates to rise.

Are fixed rate savings accounts safe?

Yes. Fixed rate savers from UK-authorised banks and building societies are protected by the FSCS up to £120,000 per person, per banking licence — the same protection as an easy access account. The "risk" with a fixed rate saver isn't losing money; it's opportunity cost if rates rise after you fix, and the lack of access during the term.

Do I pay tax on a fixed rate bond?

Interest above your Personal Savings Allowance is taxable. The timing matters: if your bond pays interest only at maturity, the whole amount usually counts as income in that tax year, which can push you over your allowance. Choosing annual interest payments, or holding the fix inside a Cash ISA, avoids the problem.

Can I add more money to a fixed rate saver?

Generally no. Most fixed rate savers only accept deposits during a short funding window after opening — typically 14 to 30 days. After that, the account is closed to new money. If you want to keep saving monthly, pair a fixed rate saver for your lump sum with a regular saver or easy access account for ongoing deposits.

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Best Fixed Rate Savers

Compare Fixed Rate Savings Accounts on DepositScout

Monitoring rates around the clock

Provider	Product			Min Balance
Investec Top pick	Fixed Rate Saver (3 Year)	5.00% Fixed	3 Years	£5,000
Atom Bank Top long term	5 Year Fixed Saver	5.00% Fixed	5 Years	£50
GB Bank	5 Year Fixed Rate Bond	4.98% Fixed	5 Years	£1,000
Compare Fixed Rate with other accounts See All Rates
GB Bank Top pick	1 Year Fixed Rate Bond	4.92% Fixed	1 Year	£1,000
GB Bank	3 year fixed rate bond	4.87% Fixed	3 Years	£1,000
OakNorth Bank	Fixed Term 12 Months	4.86% Fixed	1 Year	£1
MBNA Manage by phone	Fixed Saver	4.85% Fixed	1 Year	£1,000
Atom Bank	2 Year Fixed Saver	4.85% Fixed	2 Years	£50
Close Brothers Savings	2 Year Fixed Rate Bond	4.83% Fixed	2 Years	£10,000
Raisin UK	Fixed Account	4.75% Fixed	1 Year	£1,000
Recognise Bank	2 Year Fixed Rate Account	4.70% Fixed	2 Years	£1,000
Marcus	1 Year Fixed Term	4.60% Fixed	1 Year	£1

Investec

Top pick

5.00%

AER

Fixed

Fixed Rate Saver (3 Year)

Interest Paid

Annually

Access

3 Years

Minimum Balance

£5,000

Atom Bank

Top long term

5.00%

AER

Fixed

5 Year Fixed Saver

Interest Paid

Monthly/Annually

Access

5 Years

Minimum Balance

£50

GB Bank

4.98%

AER

Fixed

5 Year Fixed Rate Bond

Interest Paid

Monthly

Access

5 Years

Minimum Balance

£1,000

Compare Fixed Rate with other accounts

See All Rates

GB Bank

Top pick

4.92%

AER

Fixed

1 Year Fixed Rate Bond

Interest Paid

Monthly

Access

1 Year

Minimum Balance

£1,000

GB Bank

4.87%

AER

Fixed

3 year fixed rate bond

Interest Paid

Monthly/Annually/Anniversary

Access

3 Years

Minimum Balance

£1,000

OakNorth Bank

4.86%

AER

Fixed

Fixed Term 12 Months

Interest Paid

On maturity

Access

1 Year

Minimum Balance

£1

MBNA

Manage by phone

4.85%

AER

Fixed

Fixed Saver

Interest Paid

On maturity

Access

1 Year

Minimum Balance

£1,000

Atom Bank

4.85%

AER

Fixed

2 Year Fixed Saver

Interest Paid

Monthly/Annually

Access

2 Years

Minimum Balance

£50

Close Brothers Savings

4.83%

AER

Fixed

2 Year Fixed Rate Bond

Interest Paid

Annually

Access

2 Years

Minimum Balance

£10,000

Raisin UK

4.75%

AER

Fixed

Fixed Account

Interest Paid

On maturity

Access

1 Year

Minimum Balance

£1,000

Recognise Bank

4.70%

AER

Fixed

2 Year Fixed Rate Account

Interest Paid

Annually

Access

2 Years

Minimum Balance

£1,000

Marcus

4.60%

AER

Fixed

1 Year Fixed Term

Interest Paid

On maturity

Access

1 Year

Minimum Balance

£1

Showing 12 of 13 results

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Fixed Rate at a glance

Best rate today: 5.00% AER
Top provider: Atom Bank
Accounts tracked: 222
Providers tracked: 63
Protection: FSCS up to £120,000
Rates checked: 2 August 2026

The best fixed rate saver depends on how long you can commit: shorter terms keep your options open if rates rise, while longer terms protect you if rates fall. Never fix money you might need before the term ends — most bonds don't allow early withdrawals at all.

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Not sure if a fixed rate saver is right for you? Penny compares every account we track and answers in plain English.

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What is a fixed rate saver?

A fixed rate saver — often sold as a fixed rate bond or fixed term deposit — pays a guaranteed interest rate for a set period, typically between six months and five years. Unlike easy access accounts, the rate cannot be cut mid-term, so you know exactly what you'll earn from day one.

The trade-off is access: once you've funded the account, your money is locked away until the term ends (the "maturity date"). Most fixed rate savers don't allow withdrawals at all during the term, and the few that do usually charge an interest penalty.

You normally can't add money after an initial funding window either — typically 14 to 30 days after opening — so a fixed rate saver suits a lump sum you're confident you won't need, rather than ongoing saving.

How to open a fixed rate saver

Opening works like any savings account, but the decisions you make up front matter more because you can't change your mind mid-term.

1Step 1 of 5

Choose your term first. Compare 1 year against longer fixes — a slightly lower rate for a shorter term is often worth the flexibility.

2Step 2 of 5

Check the minimum deposit. Fixed rate savers commonly require £500–£1,000 to open.

3Step 3 of 5

Apply online with your personal details and National Insurance number, then fund the account within the provider's funding window (usually 14–30 days).

4Step 4 of 5

Decide how you want interest paid — monthly, annually, or at maturity. Monthly interest suits people living off their savings; interest at maturity compounds within the account.

5Step 5 of 5

Diarise the maturity date. Providers write to you before maturity, but if you do nothing your money often rolls into a much less competitive account.

Fixed Rate pros and cons

Pros

Guaranteed rate for the whole term — it cannot be cut
Usually pays more than easy access accounts, especially on longer terms
Protects your return if market rates fall
FSCS protection up to £120,000 per person, per banking licence
Fixed maturity date makes it easy to plan around a known goal

Cons

No access to your money until the term ends (or heavy penalties where withdrawals are allowed)
You can't top up after the initial funding window
If rates rise after you fix, you're stuck on the lower rate
Interest may all be paid in one tax year, which can breach your Personal Savings Allowance
Money left at maturity often rolls into a poor-paying default account

Is my money safe in a fixed rate saver?

Yes — every fixed rate saver listed on DepositScout is covered by the Financial Services Compensation Scheme (FSCS), protecting up to £120,000 per person, per authorised banking licence. Fixing your money doesn't change your protection: if the provider fails mid-term, the FSCS refunds your deposit and accrued interest up to the limit.

For balances above the limit, spread your money across providers with separate banking licences. And remember interest counts towards the limit too — a large deposit close to the cap can grow past it over a multi-year term.

Tax and the Personal Savings Allowance

Interest from fixed rate savers counts towards your Personal Savings Allowance (£1,000 tax-free for basic-rate taxpayers, £500 for higher-rate, £0 for additional-rate). Anything above it is taxed at your marginal rate.

Watch out for a fixed-term quirk: if your bond pays all its interest at maturity, HMRC usually treats the entire amount as income in that single tax year. On a multi-year bond that can blow through your allowance in one go. Choosing annual or monthly interest payments spreads the income across tax years — or use a fixed rate Cash ISA to avoid tax on interest entirely.

Work out what you'll keep after taxFree UK savings tax calculator — personal allowance, tax bands and take-home interest.

Which fixed term is best?

There's no universally best term — it's a balance between rate, flexibility and your view on where rates are heading.

6 months – 1 year

The most popular choice. One-year fixes usually beat easy access rates while keeping your money accessible relatively soon — a good default if you're unsure.

2 – 3 years

Locks today's rates in for longer. Worth considering if you expect rates to fall and won't need the money — but check the rate premium over a 1 year fix is actually worth the extra lock-up.

4 – 5 years

Maximum rate certainty for long-term planning. Best for money with a known future purpose, and be mindful of tax if all the interest lands at maturity.

Fixed Rate FAQs

Straight answers to the questions savers actually ask.

Looking for something else?

Compare every account type we track, side by side.

Savings accounts

Easy Access

Withdraw whenever you like — ideal for emergency funds.

Notice Accounts

Give 30–180 days' notice in return for higher rates.

Regular Savers

High headline rates on smaller monthly deposits.

ISAs

Cash ISA

Tax-free interest on up to £20,000 a year.

Junior ISA

Tax-free savings for children under 18.

Lifetime ISA

25% government bonus towards a first home or retirement.

Stocks & Shares ISA

Invest tax-free — compare platforms and fees.

Written by

Jonny Pease

Reviewed by

Jan Watermann

Rates checked 2 August 2026

How we rank·How we make money·Editorial policy

This page is for information only and is not financial advice. Rates and account terms can change at any time — always confirm the details on the provider's website before opening an account. Read our full disclaimer.

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