Compare our best fixed rate bonds

Easy access cash ISAs are just like easy access savings accounts, but all the interest you make is free from income tax. This tax break is less attractive to many since the introduction of the personal savings allowance, which means basic rate taxpayers can earn up to £1,000 in interest a year without paying tax and should generally should only consider an easy access ISA if it’s offering a better rate than a traditional savings account. However, higher rate payers only get a £500 savings interest allowance, while additional rate payers don’t get any allowance at all.

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One problem with savings accounts is that they typically pay less than inflation, which means the purchasing power of your savings is eroded over time. So, if you’re saving for the long term (more than five years), you might want to consider investing your money. A well-diversified portfolio can generate returns that beat inflation over time. However, there are risks, and volatility means that your balance will fluctuate, and you could even end up with less than you saved. If you are going to invest, consider a stocks and shares ISA so the returns are tax-free. 

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With a regular savings account, you promise to save a certain amount of cash, say between £25 and £250, every month for the next year. Making this commitment generally allows you to access better interest rates than with an easy access account and is also a good way to get into a regular saving habit. Withdrawals are usually not allowed. However, some accounts will let you make one cash withdrawal per year, so check for this if you think you might need to access your savings.

These accounts allow you to make withdrawals but only after giving notice. The amount of notice you have to give will be pre-agreed and could be anything from seven to 180 days. So, think carefully about whether you might need your money in an emergency, and how quickly you might need to access it if so. The longer the money is locked away, the better the interest rate you’re likely to receive.

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A high interest current account could be a good alternative to an easy access account as there are some accounts on the market offering very competitive interest rates. If you have money sitting in a current account with 0% interest and you can meet the terms and conditions to have an account with a higher rate of interest, then this is also an option worth exploring. 

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You only have to pay tax on any interest you have earned from a fixed rate bond if it exceeds your Personal Savings Allowance.

However, those earning £17,570 or less also qualify for the "starting rate", which could give you up to an extra £5,000 savings allowance depending on your income.

Under current rules, those earning £12,750 would be eligible for the full £5,000, but this entitlement decreases by £1 for each additional £1 you earn in income.

Our best interest rate for a fixed rate bond is currently 4.6%, as of Feb 14 2025.

In terms of how much money you need to open a fixed rate bond, you can open most fixed rate bonds with as little as £1 and as much as £5,000.

Yes, you can open a fixed rate bond online. Just like any savings account, you can open a fixed-rate bond online, or by visiting a bank or building society branch.

Yes, you can have more than one fixed rate bond but make sure you keep some money accessible in case of an emergency. Read this guide for help choosing the right savings account.

Yes, you can have a fixed rate bond if you have bad credit as your finances are not checked when you open a savings account. If you need help choosing the right savings account, read this guide.

You may be able to withdraw your money before the term ends, but you'll likely have the pay a penalty. Typically this amount any interest you've earned on your money. It's worth checking the terms and conditions of your fixed rate bond before you sign up.