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Why choose a three year fixed rate bond? 

A three year fixed rate bond might be for you if you want to earn a top savings rate and are prepared to forego access to your money for the three year term. The best rates are usually offered by challenger banks. View today's best rates below or read our guide to three year fixed rate bonds to learn more. 

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Browse Fixed Rate Bond Terms

Best 3 Year Fixed Rate Bonds

  • Bank of London and The Middle East Logo
    Bank of London and The Middle East Premier Deposit Account (Anticipated Profit Rate) FSCS logo
    FSCS logo
    AER
    2.55%
    Expected Rate
    Account Type
    Fixed
    Notice / Term
    3 Year Bond
    Interest Paid
    Anniversary
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Not Available Online Not Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    Additional Information

    Rates

    Rate 2.55% paid at £1K
    AER 2.55% paid at £1K
    Expected Profit Paid Anniversary
    Interest payment Interest must be paid away
    Min Opening Amount £1,000
    Max Investment £1,000,000
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a linked or nominated account

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

    Opening Restrictions

    Linked Product (Non-Funded): Must have or open a BLME transfer account to hold funds pending investment

    Additional Information

    This bank operates under Islamic finance principles, the rates displayed represent the expected profit rate.
  • Axis Bank UK Ltd Logo
    Axis Bank UK Ltd Fixed Deposit Account FSCS logo
    FSCS logo
    AER
    2.15%
    Account Type
    Fixed
    Notice / Term
    3 Year Bond
    Interest Paid
    Anniversary
    Opening Account
    Available Online Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Not Available Online Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    Additional Information

    Rates

    Rate 2.15% paid at £1K
    AER 2.15% paid at £1K
    Interest Paid Anniversary
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £1,000
    Max Investment £200,000
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a linked or nominated account

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

    Opening Restrictions

    N/A

    Additional Information

    N/A
  • Paragon Bank Logo
    Paragon Bank 3 Year Fixed Rate Savings Account FSCS logo
    FSCS logo
    AER
    2.15%
    Account Type
    Fixed
    Notice / Term
    3 Year Bond
    Interest Paid
    Anniversary
    Opening Account
    Available Online Not Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    Additional Information

    Rates

    Rate 2.15% paid at £1K
    AER 2.15% paid at £1K
    Interest Paid Anniversary
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £1,000
    Max Investment £500,000
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account pending instructions/withdrawal

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

    Opening Restrictions

    N/A

    Additional Information

    N/A
  • Paragon Bank Logo
    Paragon Bank 3 Year Fixed Rate Savings Account FSCS logo
    FSCS logo
    AER
    2.15%
    Account Type
    Fixed
    Notice / Term
    3 Year Bond
    Interest Paid
    Monthly
    Opening Account
    Available Online Not Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    Additional Information

    Rates

    Rate 2.13% paid at £1K
    AER 2.15% paid at £1K
    Interest Paid Monthly
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £1,000
    Max Investment £500,000
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account pending instructions/withdrawal

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

    Opening Restrictions

    N/A

    Additional Information

    N/A
  • Zenith Bank (UK) Ltd Logo
    Zenith Bank (UK) Ltd Raisin UK - 3 Year Fixed Term Deposit FSCS logo
    FSCS logo
    AER
    2.15%
    Account Type
    Fixed
    Notice / Term
    3 Year Bond
    Interest Paid
    Anniversary
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Available By Mail Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    Additional Information

    Rates

    Rate 2.15% paid at £1K
    AER 2.15% paid at £1K
    Interest Paid Anniversary
    Interest payment Interest must be compounded
    Min Opening Amount £1,000
    Max Investment £85,000
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a linked or nominated account

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

    Opening Restrictions

    N/A

    Additional Information

    Raisin UK is a savings marketplace offering a range of accounts. By clicking through for this product you will be directed to Raisin UK Savings Marketplace, who will administer your application. You will need to set up a Raisin UK account online and accept their terms and conditions before you apply. Raisin UK are offering a bonus of up to £100 when you open a savings account via their website. Terms and conditions apply.
  • ICICI Bank UK Logo
    ICICI Bank UK Raisin UK - 3 Year Fixed Term Deposit FSCS logo
    FSCS logo
    AER
    2.00%
    Account Type
    Fixed
    Notice / Term
    3 Year Bond
    Interest Paid
    On Maturity
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Available By Mail Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    Additional Information

    Rates

    Rate 2.04% paid at £1K
    AER 2.00% paid at £1K
    Interest Paid On Maturity
    Interest payment Interest must be paid away
    Min Opening Amount £1,000
    Max Investment £85,000
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account pending instructions/withdrawal

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

    Opening Restrictions

    N/A

    Additional Information

    Raisin UK is a savings marketplace offering a range of accounts. By clicking through for this product you will be directed to Raisin UK Savings Marketplace, who will administer your application. You will need to set up a Raisin UK account online and accept their terms and conditions before you apply. Raisin UK are offering a bonus of up to £100 when you open a savings account via their website. Terms and conditions apply.
  • RCI Bank UK Logo
    RCI Bank UK Fixed Term Savings Account FSCS logo
    FSCS logo
    AER
    1.95%
    Account Type
    Fixed
    Notice / Term
    3 Year Bond
    Interest Paid
    Anniversary
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    Additional Information

    Rates

    Rate 1.95% paid at £1K
    AER 1.95% paid at £1K
    Interest Paid Anniversary
    Interest payment Interest must be compounded
    Min Opening Amount £1,000
    Max Investment £1,000,000
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account pending instructions/withdrawal

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

    Opening Restrictions

    N/A

    Additional Information

    N/A
  • RCI Bank UK Logo
    RCI Bank UK Fixed Term Savings Account FSCS logo
    FSCS logo
    AER
    1.95%
    Account Type
    Fixed
    Notice / Term
    3 Year Bond
    Interest Paid
    Monthly
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    Additional Information

    Rates

    Rate 1.93% paid at £1K
    AER 1.95% paid at £1K
    Interest Paid Monthly
    Interest payment Interest must be compounded
    Min Opening Amount £1,000
    Max Investment £1,000,000
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account pending instructions/withdrawal

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

    Opening Restrictions

    N/A

    Additional Information

    N/A
  • Aldermore Logo
    Aldermore 3 Year Fixed Rate Account FSCS logo
    FSCS logo
    AER
    1.90%
    Account Type
    Fixed
    Notice / Term
    3 Year Bond
    Interest Paid
    Anniversary
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    Additional Information

    Rates

    Rate 1.90% paid at £1K
    AER 1.90% paid at £1K
    Interest Paid Anniversary
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £1,000
    Max Investment £1,000,000
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be reinvested in a further Fixed Rate/Fixed Term account on equivalent/similar terms

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

    Opening Restrictions

    N/A

    Additional Information

    N/A
  • Aldermore Logo
    Aldermore 3 Year Fixed Rate Account FSCS logo
    FSCS logo
    AER
    1.90%
    Account Type
    Fixed
    Notice / Term
    3 Year Bond
    Interest Paid
    Monthly
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    Additional Information

    Rates

    Rate 1.88% paid at £1K
    AER 1.90% paid at £1K
    Interest Paid Monthly
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £1,000
    Max Investment £1,000,000
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be reinvested in a further Fixed Rate/Fixed Term account on equivalent/similar terms

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

    Opening Restrictions

    N/A

    Additional Information

    N/A

Select a Savings Category

Note

Eligible deposits with UK institutions are protected by the Financial Services Compensation Scheme up to a maximum level of protection of £85,000 per person per institution.

Disclaimer

All rates subject to change without notice. Please check all rates and terms before investing or borrowing.

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A guide to 3 year fixed rate bonds

Leanne Macardle

Leanne Macardle

Editor

At a glance

  • Three year fixed rate bonds are a good compromise between short and long-term fixed rate bonds.
  • As most bonds don’t allow early access to funds, make sure you won’t need your money for the next three years.
  • If early access is allowed, a considerable interest penalty is likely.

Fixed rate bond considerations

The two most important things to consider when taking out a three year fixed rate bond are interest rates and how likely it is that you’ll need access to those funds invested within the three-year period.

Firstly, the interest rate you sign up to will be fixed for the duration of the bond. Therefore, if rates skyrocket during those three years, you might find yourself earning an interest rate that suddenly seems quite poor. On the other hand, if interest rates fall, you’ll have made a great investment earning a return that is much better than the majority of easy access accounts. Three year fixed rate bonds are considered a good trade-off between the security of a fixed rate product without locking your money away for the long-term.

Access to your cash

When taking out a fixed rate bond, you are usually not supposed to withdraw your cash for a specified period of time – in this instance, it will be for three years. Most three-year fixed rate bonds do not allow you access to your money once it’s been deposited until the bond matures. Where early withdrawals are allowed, a considerable interest penalty will almost certainly have to be paid.

If not being able to access your money over a three year period could be a challenge, you may want to consider a two year fixed rate bond or a one year fixed rate bond as an alternative.

Who offers the best three-year fixed rate bonds?

Many of the best rates available on three-year fixed rate bonds are offered by what is often referred to as ‘challenger banks’. These are normally, smaller, relatively unknown banks who are new to the market. However, they are just as safe as any of the high street, big-name banks and building societies. All the providers appearing on Moneyfacts.co.uk are part of the Financial Services Compensation Scheme (or an EU equivalent). Therefore, you can be safe in the knowledge that the first £85,000 you have saved is protected if the bank or building society were to go bust.

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