Fixed Rate Bond

What is it?

A Fixed Rate Bond (or ‘Fixed Term Deposit’) is a type of savings account that allows you to lock away your savings for a set amount of time at a rate that is set when you open your account. Fixed Rate Bonds are a great solution if you’re happy to tie up your savings for a period of time and want the certainty of a fixed rate of interest (or profit) you’ll receive at the end of your chosen term.

Except in very limited circumstances (which you can read about in the terms and conditions), you can’t access your money until the end of the fixed term and you can’t cancel your application once the account has been opened.

Fixed Rate Bond options

Take a look at our marketplace to see the range of Fixed Rate Bonds offered by our partner banks, with terms ranging from a few months to a number of years. You’ll also find details of the interest rates, or, in the case of banks operating under Sharia banking principles, ‘expected profit rates’ on offer within our marketplace.

Interest on a Fixed Rate Bond is earned annually and applied when the bond matures. The interest rate on a Fixed Rate Bond will not change. The exception to this is where you choose a partner bank operating under Sharia banking principles where the expected profit can change in certain circumstances. You can find out more about this on the ‘what is Sharia banking’ page.

Maturity

When your Fixed Rate Bond approaches its maturity date, you may have a couple of options:

  1. If the bank you’ve chosen offers the option to renew your account, you’ll be given the option to roll your deposit and interest or profit earned into another Fixed Rate Bond product from the same bank. Where the option is available, you can view the terms of the renewal offer and elect to take it up between 28 and 5 days before the maturity date by using the ‘Prolong fixed term deposit’ option within your Smart Savings Account .
  2. If your chosen bank doesn’t offer a renewal option, or if you don’t want to renew, your deposit and any interest or profit earned will be transferred to your Smart Savings Account so that you can either withdraw it, or use it to fund other products. It can take up to 4 business days after maturity for the money to reach your Smart Savings Account.

Please be aware that the Financial Services Compensation Scheme will protect your deposit up to £85,000 per person, per banking group, not per savings account. If you choose to renew a Fixed Rate Bond and the amount of the deposit plus any interest/profit earned exceeds this value, the full value of your savings account may not be protected.