Compare Fixed-Rate Deposits in United Kingdom

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What are fixed-rate bonds in the UK?

A fixed-rate bond is a savings account that locks your money away for a set term, commonly one, two, three or five years, in exchange for a guaranteed interest rate for the whole period. Unlike an easy-access account, you generally cannot withdraw until maturity, and in return you get certainty and usually a higher rate.

They suit savers who have a lump sum they will not need in the short term and want to shelter it from the rate cuts that can hit variable accounts when the Bank of England base rate falls.

How the UK savings-bond market works

Rates are driven by the Bank of England base rate and competition between banks for deposits. Challenger and specialist banks often lead the best-buy tables because they need to attract funding, which is why names less familiar on the high street frequently top the rankings. Interest can be paid monthly or annually, and is often compounded.

Because your money is committed, the trade-off is flexibility: if rates rise after you fix, you are locked in, and if you need the cash early, access is usually restricted or penalised.

Leading fixed-rate bond providers

Specialist savings banks dominate the best-buy tables: OakNorth Bank, Allica Bank, Atom Bank and Charter Savings Bank are regular fixtures, alongside Aldermore. Marcus by Goldman Sachs, Tesco Bank, Virgin Money and Nationwide bring more familiar brands to the market. Savings platforms let you open bonds from several of these banks under one login.

How to choose the right bond

Term — longer fixes usually pay more but tie up your money for longer; ladder several terms to balance access and rate.

Interest frequency — monthly interest suits those wanting income; annual compounding maximises growth.

Funding window — many bonds only accept deposits within a short window after opening.

Access rules — check whether any early access is allowed and the penalty.

What it costs and pays

There is normally no fee to hold a fixed-rate bond, the return is the point. Current top rates broadly sit in the region of 4.75% to 5.16% depending on term and provider. Remember your Personal Savings Allowance shelters £1,000 of interest a year for basic-rate taxpayers (£500 for higher-rate), above which interest is taxable, which is why a Cash ISA can be worth considering for larger sums.

Protections and regulation

Deposit-taking banks are authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA). Eligible deposits are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 per person, per banking licence. Check licences carefully, some brands share a single licence, so spreading large sums across separate institutions keeps you fully covered.

Common questions

Can I withdraw early? Usually not, or only with a significant interest penalty.

Fixed bond or Cash ISA? An ISA shelters interest from tax; a bond may pay more headline interest but counts towards your Personal Savings Allowance.

What happens at maturity? The bank contacts you to reinvest or transfer out; avoid rolling automatically onto a poor rate.

Are fixed rates guaranteed? Yes, the rate is locked for the whole term regardless of later Bank of England moves, which is the core appeal of fixing.

Should I use a savings platform? Platforms such as those offered by some providers let you open bonds from several banks under one login, though the underlying FSCS protection still applies per bank licence.

Fixed-Rate Deposits in United Kingdom — FAQ