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Our Fixed Rate Bonds explained

Simply put, a fixed term savings account offers a fixed rate of interest for a specified period of time.

They can be fixed for a number of years, typically ranging from one to five, and will mature at the end of the fixed term. Virgin Money offers fixed term savings in the form of limited issue Fixed Rate Bonds.

Who are Fixed Rate Bonds for?

If you’re looking to save a lump sum, a Fixed Rate Bond could be ideal. It pays a fixed interest rate for a set length of time.

What is a Fixed Rate Bond?

A Fixed Rate Bond pays a fixed interest rate for a set period of time. The longer you can put your money away for, the better your interest rate will be.

As you are committing your savings for a fixed term, it’s a good idea to only deposit money you can afford to lock away for a while. It's worth remembering that savings bonds are better suited to lump sums of money rather than regular payments.

What makes a Virgin Money Fixed Rate Bond better?

  • We’ll automatically remind you when your fixed rate is about to end.
  • Get your interest paid monthly or annually.

View our Fixed Rate Bonds  

Your Fixed Rate Bond questions answered

How do Fixed Term accounts work?

We have a range of fixed term accounts on offer for you to choose from, and our Fixed Rate Bonds are quite simple – the fixed rate of interest is paid on the sum of money in the account for the length of the Fixed Rate Bond period.

The interest is then either paid into the bond or into a separate account, and it may be paid monthly or annually, depending on the financial institution and your preference.

You will receive an annual statement which tells you how much interest you have earned until your bond has matured.

With other Fixed Rate Bonds, once the fixed rate period comes to an end, your bond will have matured. At this point you will be able to access your funds free of charge.

How much can you earn?

The interest you will earn on your Fixed Rate Bond is dependent on a number of factors:

  • The amount of money you deposit.
  • The fixed interest rate of the bond.
  • The length of the fixed rate period.

These factors should all be carefully considered when choosing which Fixed Rate Bond is right for you.

Why choose a Fixed Rate Bond?

You’ll know exactly how much you’ll earn

As soon as you open your bond you will know exactly how much you'll earn during the fixed-rate period. With your money locked away for a period of time, you can rest assured that your rate will remain the same during the fixed period, even if interest rates change.

Perfect for planning ahead

With a Fixed Rate Bond you can accurately forecast what your earnings will be once your bond matures, allowing you to plan ahead for your financial commitments. So whether you’re saving for your children’s future, a wedding, or maybe even a dream holiday, you’ll have peace of mind that your earnings are secure.

A Fixed Rate Bond could be ideal if:

  • You are looking for a longer-term home for your savings.
  • You are comfortable with tying your money away for a fixed period.
  • You want to be able to accurately forecast your earnings for the future.
  • You have a lump sum you want to invest without taking any risks with investments.

Great choice

Fixed Rate Bonds are usually offered over one to five years. Typically, as the term of the bond increases, so does the interest rate. You can choose whichever length of time suits you best – you may be happy to tie your money up for five years to benefit from a higher rate, or you may prefer to choose a one-year option so you can access your money sooner.

How do I let you know what I want to do when my bond matures?

If you open a Fixed Rate Bond online, we'll contact you before your fixed rate period comes to an end. We’ll ask you to sign in to our Online Service to tell us what you’d like to do.

After the fixed rate period your account will become a variable rate account.

We will write to you before the end of the fixed rate period to let you know the options available to you, as well as advising you of the interest rate currently payable on the variable rate account.

What’s the minimum balance for a Fixed Rate Bond?

Unlike some banks, we offer a low minimum balance of only £1 – it’s that easy to start saving with us.

Some customers like to open their account with £1 and then transfer a larger sum in. Remember, our Fixed Rate Bonds aren't around for long, so it's a good idea to deposit money quickly in case they are withdrawn for further deposits.

What next?

Find an account online

View all our savings accounts online and apply for one now.

Book a Store appointment

Come into one of our Stores and talk to us about our accounts.

Talk to us over the phone

Call us to discuss our range of accounts on 0345 600 4466.

Call charges and information

03 numbersSame as calls to 01 or 02 numbers and they are included in inclusive minutes and discount schemes in the same way.
084 numbersMaximum of 7p per minute, plus your phone company's access charge.
087 numbersMaximum of 13p per minute, plus your phone company's access charge.
0800 numbersFree from UK landlines and personal mobile phones.

Calls may be recorded for training and quality purposes.

Looking for something else?

Cash ISAs

As you don’t pay tax on the interest you earn, it’s a great way to make the most of your savings.

Read more about Cash ISAs

Limited Access accounts

If you don’t intend to make lots of withdrawals, or you know in advance when you'll need your money, you could make your savings work harder with one of our limited access accounts.

Read more about Limited Access accounts
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