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Why should I choose a 3 year fixed rate bond? 

3-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 smaller providers. 

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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
2.50%
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 2.50% paid at £1K
AER 2.50% 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.
ICICI Bank UK Logo
ICICI Bank UK Raisin UK - 3 Year Fixed Term Deposit FSCS logo
FSCS logo
AER
2.40%
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 2.46% paid at £1K
AER 2.40% 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
2.36%
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 2.36% paid at £1K
AER 2.36% 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
Axis Bank UK Ltd Logo
Axis Bank UK Ltd Raisin UK - 3 Year Fixed Term Deposit FSCS logo
FSCS logo
AER
2.31%
Account Type
Fixed
Notice / Term
3 Year Bond
Interest Paid
On Maturity (Compounded Annually)
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 2.31% paid at £1K
AER 2.31% paid at £1K
Interest Paid On Maturity (Compounded Annually)
Interest payment Interest paid on maturity
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

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.
Aldermore Logo
Aldermore 3 Year Fixed Rate Account FSCS logo
FSCS logo
AER
2.10%
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 2.10% paid at £1K
AER 2.10% 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
Skipton BS Logo
Skipton BS 3 Year Fixed Rate E-Bond Issue 90 FSCS logo
FSCS logo
AER
1.75%
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 1.50% paid at £500, 1.75% paid at £20K
AER 1.50% paid at £500, 1.75% paid at £20K
Interest Paid Anniversary
Interest payment Interest can be paid away or compounded
Min Opening Amount £500
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 16
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
Gatehouse Bank Logo
Gatehouse Bank Fixed Term Deposit 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
Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
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 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

This bank operates under Islamic finance principles, the rates displayed represent the expected profit rate.
Al Rayan Bank Logo
Al Rayan Bank Fixed Term Deposit FSCS logo
FSCS logo
AER
2.52%
Expected Rate
Account Type
Fixed
Notice / Term
36 Month Bond
Interest Paid
Quarterly
Opening Account
Available Online Available At Branch Available By Mail Available By Telephone Available By Mobile
Managing Account
Available Online Available At Branch Available By Mail Available By Telephone Available By Mobile
Rates
Access
Information
Opening Restrictions
Additional Information

Rates

Rate 2.50% paid at £1K
AER 2.52% paid at £1K
Expected Profit Paid Quarterly
Interest payment Interest can be paid away or compounded
Min Opening Amount £1,000
Max Investment £0
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 16
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

This bank operates under Islamic finance principles, the rates displayed represent the expected profit rate.
ICICI Bank UK Logo
ICICI Bank UK HiSAVE Fixed Rate Account FSCS logo
FSCS logo
AER
2.40%
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
Rates
Access
Information
Opening Restrictions
Additional Information

Rates

Rate 2.40% paid at £1K
AER 2.40% paid at £1K
Interest Paid Anniversary
Interest payment Interest must be paid away
Min Opening Amount £1,000
Max Investment £0
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

Linked Product (Non-Funded): HiSAVE Savings account automatically opened for administration of maturity proceeds

Additional Information

N/A
ICICI Bank UK Logo
ICICI Bank UK HiSAVE Fixed Rate Account FSCS logo
FSCS logo
AER
2.40%
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
Rates
Access
Information
Opening Restrictions
Additional Information

Rates

Rate 2.37% paid at £1K
AER 2.40% paid at £1K
Interest Paid Monthly
Interest payment Interest must be paid away
Min Opening Amount £1,000
Max Investment £0
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

Linked Product (Non-Funded): HiSAVE Savings account automatically opened for administration of maturity proceeds

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.

Quick Links

Quick links are where we have an arrangement with a provider so you can move directly from our site to theirs to view more information and apply for a product. We also use quick links where we have an arrangement with a preferred broker to move you directly to their site. Depending on the arrangement we will may receive a modest commission either when you press a 'Go to Provider' or 'Speak to an Adviser' buttons, when you call an advertised number or when you complete an application.

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A guide to fixed rate bonds

Find out how fixed rate bonds work and their pros and cons.

Find out how fixed rate bonds work and their pros and cons.

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A Guide To 3 Year Fixed Rate Bonds

Leanne Macardle

Leanne Macardle

Editor

At a glance

  • 3-year fixed rate bonds are the perfect 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.

Things to consider

When working out whether a 3-year fixed rate bond is for you, remember to consider what you think will happen to interest rates:

  • If rates go up you could find that your bond is paying less than the top rates available and to make matters worse, it may be expensive or impossible to move your money before the end of the term to capitalise on better returns.
  • If rates go down, or remain broadly the same, you’ll earn more than if you had kept your money in the best-paying easy access account.

What else do I need to know?

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 3-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.

Many of the best rates available on 3-year fixed rate bonds are offered by smaller, relatively unknown banks who are new to the market. These are often referred to as challenger banks.

Learn more about challenger banks

Don’t recognise a fixed rate bond provider?

As all banks and building societies listed by moneyfacts.co.uk must be UK-licensed and part of the Financial Services Compensation Scheme (or an equivalent), 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.

Learn more about depositor protection

Learn more about depositor protection

At a glance

  • 3-year fixed rate bonds are the perfect 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.

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