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.
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.
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.
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.
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.
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.
Yes, you can choose to open your account online. You can also view your statement and balance 24/7.
Completing the form online ensures we receive all of the information needed to open your account. We will then send you a Welcome Pack by post with all the information you need to get started.
Remember, a Fixed Rate Bond is not operated online. If you wanted an account you can operate online, please choose a Fixed Rate E-Bond from the range of accounts we have on offer.
No, our Fixed Rate Bonds don’t allow withdrawals, as they are designed to help you get the most from lump sum deposits.