Fixed rate bonds

Fixed rate bonds (also known as fixed rate savings accounts or fixed term deposits) are savings accounts that pay a fixed interest rate for a set term. They can suit savers who know they won’t need access to their money for a while.

Finding the best fixed rate bonds for you depends on factors such as how long you can lock your money away, whether you might need access, and how savings interest fits with your tax allowances.

This page helps you compare rates available on Raisin UK and understand how fixed rate bonds work, including deposit protection, tax, and what happens at maturity.

Raisin UK lets you compare fixed rate bonds, fixed rate savings accounts and fixed term deposits from multiple banks and building societies in one place.

Fixed rate bonds are a type of savings account that pay a fixed rate of interest for a set term. They are sometimes described as fixed rate savings accounts, fixed term deposits or lump sum savings accounts.

You deposit a lump sum at the start, which is locked in place until the bond matures. You receive interest on your savings, which is paid according to the terms of the account (but often annually or at the end of the term).

For example, if you save £10,000 in a one-year fixed rate bond paying 4% AER, you would earn £400 interest (before tax, if applicable) over the term.

Updated: 01.01.2026

On 18 December 2025, the Bank of England’s Monetary Policy Committee (MPC) voted cut the base rate to 3.75%. The next decision will take place on 5 February 2026. Learn more about how Bank of England base rate cuts affect savings rates - and what you can do to potentially reduce the impact. 

Saving for retirement? If you can afford to lock your savings away for a set period, fixed rate bonds typically offer strong returns. Our top fixed rate bond currently pays 4.25% AER.

Visit the Raisin UK marketplace today and compare competitive fixed rate bonds from our partner banks.

1. Open a Raisin UK Account: Register for free by entering a few details.

2. Compare fixed rate bonds: Use the marketplace to filter products by term, AER and provider.

3. Apply and fund your chosen account: Complete your application and transfer your deposit to the partner bank.

4. Receive your funds and interest at maturity: At the end of the term, your savings and interest are paid out according to the account’s terms.

Banks offer fixed rate bonds of differing lengths, typically ranging from a few months to several years.

6 month fixed rate bonds are a short-term option that offer quicker access but often with lower rates than longer terms.

1 year fixed rate bonds are a common choice for savers who want to save over a short-to-medium timeframe. They offer a fixed return and often competitive rates of interest.

2 year fixed rate bonds are a medium-term option that often pay higher rates in return for a longer commitment.

3 year fixed rate bonds typically offer savers slightly higher rates of interest than 1 and 2 year fixed term deposits, due to the longer timeframe that your money is locked away for. 

5 year fixed rate bonds offer a bigger return on your investment due to the compounding effect of interest that occurs each year, but less flexibility if your plans change.

The best fixed rate bond for you depends on a number of factors and personal circumstances. There are some common factors savers generally consider though. 

• Term length: how long your money will be locked away
• Interest: how much interest will you earn and when is it paid? 
• Deposit limits: the minimum and maximum amounts set by the provider
• Access: early withdrawals are usually prohibited. If they are available, they’re typically restricted or penalised.
• Deposit protection: FSCS protection applies up to £120,000 per person, per bank. Deposits held with the same bank all count towards this limit, even if they’re held in different types of account (i.e. current accounts and savings accounts).

You may have to pay tax on interest earned from fixed rate bonds, depending on how much interest you earn in a tax year and your income. Most UK taxpayers receive a Personal Savings Allowance, as outlined below:

Personal Savings Allowance (PSA)

• Basic rate taxpayers: up to £1,000 per tax year
• Higher rate taxpayers: up to £500 per tax year
• Additional rate taxpayers: no allowance

If you’ve used your personal allowance, any further interest earned will be taxed at the following rates (as of the 2025/26 tax year): 

Here's an example: You’re a basic rate taxpayer and you earn £400 interest on a £10,000 fixed rate bond.

• If you haven’t used your personal savings allowance, this interest would be tax-free.
• If you’ve used your personal savings allowance, the £400 interest would be taxed at 20%. 

Starting Rate for Savings

In addition, you may be able to earn up to £5,000 of savings interest tax-free if your other income is less than £17,750. This allowance reduces as other income increases.

Tax rules can change, so always check the latest HMRC guidance. Raisin does not withhold or pay tax on interest, and you are responsible for declaring any tax due from interest earned on accounts held with our partner banks.

Depending on the terms of the bond you held, you may have a number of options when your bond matures.

• Some banks will return your original deposit and any interest earned. For accounts held on Raisin, funds are returned to your Raisin Transaction Account. 
• You may have the option to renew into another fixed rate bond with the same bank. Your options will be presented when you choose to renew. 
• A few banks also offer auto-renewal, which means your deposit will automatically rollover into another fixed term at maturity. At Raisin, you can manage auto-renewals in your Account dashboard. 

Read the terms of your chosen fixed rate bond to get a clear picture of what happens at maturity. 

With Raisin UK, you can compare fixed rate bonds and fixed rate savings accounts from multiple banks and building societies in one place. One registration gives you access to all of the accounts on our platform without the need to fill out separate paperwork or provide your full details for each application.

You can find out how to apply by reading our guide to opening a fixed rate bond.