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Why should I choose a 5 year fixed rate bond?

The longer you can afford to set your savings aside, the higher your interest rate should be. While most providers tend to offer five-year bonds, it is now not unusual to see longer term bonds too. 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
2.70%
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 2.70% paid at £1K
AER 2.70% 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.
RCI Bank UK Logo
RCI Bank UK Fixed Term Savings Account FSCS logo
FSCS logo
AER
2.60%
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 2.60% paid at £1K
AER 2.60% 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
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
Skipton BS Logo
Skipton BS 5 Year Fixed Rate E-Bond Issue 90 FSCS logo
FSCS logo
AER
2.00%
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 1.80% paid at £500, 2.00% paid at £20K
AER 1.80% paid at £500, 2.00% 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
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
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
On Maturity
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 1.81% paid at £2K
AER 1.75% paid at £2K
Interest Paid On Maturity
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
Gatehouse Bank Logo
Gatehouse Bank Fixed Term Deposit 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
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 2.75% 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 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.
Secure Trust Bank Logo
Secure Trust Bank 5 Year Fixed Rate Bond FSCS logo
FSCS logo
AER
2.66%
Account Type
Fixed
Notice / Term
15.07.24
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 Available By Telephone Not Available By Mobile
Rates
Access
Information
Opening Restrictions
Additional Information

Rates

Rate 2.63% paid at £1K
AER 2.66% 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 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
Secure Trust Bank Logo
Secure Trust Bank 5 Year Fixed Rate Bond FSCS logo
FSCS logo
AER
2.66%
Account Type
Fixed
Notice / Term
15.07.24
Interest Paid
Yearly
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 Available By Telephone Not Available By Mobile
Rates
Access
Information
Opening Restrictions
Additional Information

Rates

Rate 2.66% paid at £1K
AER 2.66% paid at £1K
Interest Paid Yearly
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 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

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

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Best 5 Year Fixed Rate Bonds
Provider AER Account Type Notice / Term Min Investment
Gatehouse Bank Logo Gatehouse Bank Fixed Term Deposit 2.75% Fixed 5 Year Bond £1,000
Bank of London and The Middle East Logo Bank of London and The Middle East Premier Deposit Account (Anticipated Profit Rate) 2.70% Fixed 5 Year Bond £1,000
Secure Trust Bank Logo Secure Trust Bank 5 Year Fixed Rate Bond 2.66% Fixed 15.07.24 £1,000
Secure Trust Bank Logo Secure Trust Bank 5 Year Fixed Rate Bond 2.66% Fixed 15.07.24 £1,000

Five-year Fixed Rate Bonds

Leanne Macardle

Leanne Macardle

Editor
Published: 30/01/2019

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 does happen to be allowed.
  • Think carefully about what might happen to interest rates in the future.

Things to consider

When working out whether a long-term fixed rate bond is for you, it is vital that you consider what you think might happen to interest rates:

  • If rates go up, you could find that your bond eventually pays less than the top rates available. This risk is greatly heightened with long-term bonds, and if your bond does not allow early access to funds, you will not be able to move your money before the end of the term to capitalise on these better returns.
  • If rates happen to go down, or remain broadly the same, you’ll earn more with a long-term bond 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 not supposed to withdraw your cash for the specified period of time. Indeed, most long-term 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.

Don’t recognise a fixed rate bond provider?

Many of the best rates available in the fixed rate bond market 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

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

businessman counting coins

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 does happen to be allowed.
  • Think carefully about what might happen to interest rates in the future.

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