Fixed rate bonds
A fixed rate bond is a type of savings account which provides a fixed interest rate, in return for a fixed term commitment.
The term of a fixed rate bond is usually between one and five years, during which access to your money is restricted. Some bonds don’t allow access to your money during the term, and even if they do there might be penalty charges involved in withdrawing early so you should be prepared to commit for the full term.
The longer the term of the account the higher the rate of interest you’re likely to be offered. You should compare fixed rate bonds with other types of savings account before you make a commitment. Find out more by reading our guide: How do Fixed Rate Bonds Work?
Last updated: 28 May 2015