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Product focus: Fixed rate bonds

Product focus: Fixed rate bonds

Category: Savings

Updated: 11/08/2011
First Published: 11/08/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Fixed rate bonds are sometimes perceived as complicated investments, however they are purely savings accounts designed for savers to deposit their funds over a set period of time.

Interest rates for fixed rate bonds tend to be higher than their instant access counterparts, although savers must be committed to locking their cash away for the designated period.

Accessing funds during this time can result in penalties, such as loss of interest or even account closure. Here is a selection of the best fixed rate bonds available at present.

West Brom BS

  • The highest rate for savers looking for a one year commitment is being offered by West Brom BS on its eBond.
  • The online operated account pays 3.55% and offers a monthly interest option for savers after a regular income.
  • Between £1,000 and £250,000 can be invested in the bond, but once opened further additions and earlier access is not permitted.

United National Bank

  • Savers after a medium term commitment could consider the three year bond from United National Bank, which pays a market leading 4.25%.
  • Savers can invest between £1 and £1m into the account, which has a monthly interest option available.
  • Once opened further additions can not be made into the account and access to funds is not permitted during the three year term.


  • SAGA is offering savers aged 50 years and over a market leading rate of 4.65%.
  • The account offers a monthly interest option for those wishing to invest a lump sum and earn an income from their money.
  • Up to £10m can be invested into the account, which is operated by post or online.
  • Further additions can be made whilst the issue remains open.
  • Savers can access their money during the five year term, but a 365 day loss of interest penalty will be payable.

Find the best savings rates for you - Compare savings accounts

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.