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Why choose a five year fixed rate bond?

Compared to shorter term alternatives, five year fixed rate bonds often offer the best interest rates. While most providers tend to offer five year bonds, even longer terms are also becoming available too. Scroll down to see today's best rates or read our five year fixed rate bond guide to learn more.  

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Best 5 Year Fixed Rate Bond Rates

  • 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
    2.75%
    Expected Rate
    Account Type
    Fixed
    Notice / Term
    5 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 2.75% paid at £1K
    AER 2.75% 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.
  • Aldermore Logo
    Aldermore 5 Year Fixed Rate Account FSCS logo
    FSCS logo
    AER
    2.25%
    Account Type
    Fixed
    Notice / Term
    5 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 2.25% paid at £1K
    AER 2.25% 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 5 Year Fixed Rate Account FSCS logo
    FSCS logo
    AER
    2.25%
    Account Type
    Fixed
    Notice / Term
    5 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 2.23% paid at £1K
    AER 2.25% 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
  • Paragon Bank Logo
    Paragon Bank 5 Year Fixed Rate Savings Account FSCS logo
    FSCS logo
    AER
    2.25%
    Account Type
    Fixed
    Notice / Term
    5 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 2.25% paid at £1K
    AER 2.25% 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 5 Year Fixed Rate Savings Account FSCS logo
    FSCS logo
    AER
    2.25%
    Account Type
    Fixed
    Notice / Term
    5 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 2.23% paid at £1K
    AER 2.25% 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
  • RCI Bank UK Logo
    RCI Bank UK Fixed Term Savings Account FSCS logo
    FSCS logo
    AER
    2.15%
    Account Type
    Fixed
    Notice / Term
    5 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 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 £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
    2.15%
    Account Type
    Fixed
    Notice / Term
    5 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 2.13% paid at £1K
    AER 2.15% 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
  • ICICI Bank UK Logo
    ICICI Bank UK Raisin UK - 5 Year Fixed Term Deposit FSCS logo
    FSCS logo
    AER
    2.00%
    Account Type
    Fixed
    Notice / Term
    5 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 2.08% 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.
  • United Bank UK Logo
    United Bank UK 5 Year Fixed Term Deposit FSCS logo
    FSCS logo
    AER
    1.75%
    Account Type
    Fixed
    Notice / Term
    5 Year Bond
    Interest Paid
    Anniversary
    Opening Account
    Not Available Online Available At Branch 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 1.75% paid at £2K
    AER 1.75% paid at £2K
    Interest Paid Anniversary
    Interest payment Interest must be paid away
    Min Opening Amount £2,000
    Max Investment £1,000,000
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    Earlier access at banks discretion subject to 365 day loss of interest.
    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
  • United Bank UK Logo
    United Bank UK 5 Year Fixed Term Deposit FSCS logo
    FSCS logo
    AER
    1.75%
    Account Type
    Fixed
    Notice / Term
    5 Year Bond
    Interest Paid
    Monthly
    Opening Account
    Not Available Online Available At Branch 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 1.74% paid at £2K
    AER 1.75% paid at £2K
    Interest Paid Monthly
    Interest payment Interest must be paid away
    Min Opening Amount £2,000
    Max Investment £1,000,000
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    Earlier access at banks discretion subject to 365 day loss of interest.
    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 5 year fixed rate bonds

Leanne Macardle

Leanne Macardle

Editor

At a glance

  • Long-term fixed rate bonds offer the very best bond rates.
  • Make sure you won’t need access to your funds for the full term.
  • A significant interest penalty is likely to be charged if early access to funds is allowed.
  • Think carefully about what might happen to interest rates in the future.

Falling into the category of long-term investments, A five year fixed rate bond is an excellent way to garner some of the best interest rates available on the market. In exchange for not touching the money deposit for the set period, the bank or building society will pay a preferential rate – often well beyond the kind of returns you can find for easy access accounts or fixed rate bonds with shorter terms

Pros and cons of five year fixed rate bonds

A definite plus point of five year fixed rate bonds is the very favourable interest rates available for many long-term savings products. In exchange for your commitment not to touch your cash for such a long period, banks and building societies are keen to offer attractive rates, and competition in this area means that you can find a great offer by using our comparison tables.

In addition, many accounts of this length offer a variation paying interest on a monthly, rather than yearly basis. This can be an excellent benefit if you are investing a significant sum and plan to live on the income or just use it to supplement your monthly revenue.

On the other hand, the biggest disadvantage of this kind of long-term investment is the fact that five years is a considerable time to lock away your cash. If you are considering a five year fixed rate bond, then it pays to think carefully about the reality of whether or not you can afford to be without these funds for such a long period. Even if you are allowed to have early access – and most accounts will not – then you will likely face a significant loss of interest.

Who offers the best five year fixed rates?

Many of the best rates available in the five year fixed rate bond marketplace are offered by smaller, relatively unknown banks who are new to the market – often referred to as challenger banks. Your money is just as safe in these institutions as it is in any high street bank. All banks and building societies we list are part of the Financial Services Compensation Scheme (or an EU equivalent). Consequently, you can feel assured that the first £85,000 you have saved is protected if the bank or building society were to collapse.

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