Best Fixed Rate Saving Bonds June 2025

Fixed-rate bonds are a great way for savers to know exactly how much they will earn on their savings for a fixed amount of time. Most people save cash for different purposes, including short-, medium- and long-term goals. To secure a better interest rate on your interest-paying savings accounts, it makes sense to put any money you have earmarked for the longer term into a fixed-rate bond.

Best Fixed Rate Savings Bonds

Here are a few of the best deals around at the moment based on a £1,000 deposit.

Fixed Rate Bond ProviderAccount NameAER (%)TermInterest PaidAccess MethodFSCS Protected
Birmingham Bank5 Year Fixed Rate Bond – Issue 214.455 YearsAnniversaryOnline onlyYes
Birmingham Bank3 Year Fixed Rate Bond – Issue 264.453 YearsAnniversaryOnline onlyYes
Hampshire Trust Bank1 Year Online Fixed Saver (Issue 76)4.451 YearAnniversaryOnline onlyYes
JN BankFixed Term Savings Account4.453 YearsAnniversaryOnline onlyYes
LHV Bank9 Month Fixed Rate Bond4.459 MonthsOn MaturityMobile app onlyYes

What are fixed-rate bonds?

A fixed-rate bond is just a savings account in which your money is locked away for a set time period, with a guaranteed interest rate applied. Your money is out of reach for a while, but if you know you won’t need to access it for a while, you might as well make it work as hard as possible.

Generally speaking, the longer you can lock your money away, the better the rate you will get. You can choose from long- and short-term fixed-rate bonds. For example, a short-term bond might have a three- or six-month term, while a longer-term fixed-rate bond might run for between one and seven years. The amount of interest you can earn will also vary depending on the size of savings.

Pros and cons of fixed-rate bonds

Your money is safe in a fixed-rate bond as long as the provider is regulated by the Financial Conduct Authority, the watchdog for the financial services industry.

Up to £85,000 of your money per provider is protected under the Financial Services Compensation Scheme in the unlikely event your bank or building society goes bust. You can earn better rates than you would in an easy-access account.

However, most will have restrictions or penalty charges around withdrawals so you’re taking the risk that you won’t be able to get to your money if you suddenly need it.

Fixed-rate bond alternatives

The main disadvantage of fixed-rate bonds is that your money is locked away for a set period. There are other accounts on the market that offer high-interest rate, where you can still access your money One of the best ways to search the market for better interest rates than you get with easy access accounts is to use Hargreaves Lansdown’s Active Savings account where you can spread your savings around a range of providers who offer high-interest rates.

Here is a list of some of the best savings account offers on the market at the moment:

Savings PlatformBest RateSavings AccountsMinimum DepositCustomer RatingMore Info
raisin Savings Account4.7%80+£1
5.0
(Based on 2 reviews)
See Rates
Hargreaves Lansdown Active Savings4.55%60+£1
3.8
(Based on 1,758 reviews)
See Rates
Flagstone Savings Platform4.12%200+£10,000
4.3
(Based on 3 reviews)
See Rates
AJ Bell Cash Savings Hub4.7%31£1,000
4.2
(Based on 1,094 reviews)
See Rates
Rates last updated: 7th April 2025 11:28 am

You may also be interested in these other types of savings accounts:

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