Best Fixed-Rate Bonds UK 2026
Fixed-rate bonds pay a guaranteed interest rate in exchange for locking your money away for a set period. With rates still elevated, locking in now protects your returns if rates fall.
Current Best Rates
| Term | Best Rate | Provider | Min Deposit |
|---|---|---|---|
| 1 year | 5.0% AER | Close Brothers | £10,000 |
| 1 year | 4.9% AER | Atom Bank | £50 |
| 2 year | 4.75% AER | Aldermore | £1,000 |
| 2 year | 4.7% AER | Shawbrook | £1,000 |
| 3 year | 4.6% AER | United Trust Bank | £5,000 |
| 5 year | 4.4% AER | Secure Trust Bank | £1,000 |
Fixed Rate vs Easy Access
Choose a fixed rate bond if you will not need the money for the full term, want certainty about returns, or think rates may fall. Choose easy-access if you might need the money unexpectedly or want flexibility.
FSCS Protection
Fixed-rate bonds from authorised UK banks and building societies are FSCS-protected up to £85,000 per banking licence. Spread deposits across different providers if you have more than £85,000.
Tax on Bond Interest
Interest is taxable in the year the bond matures. To avoid tax entirely, consider fixed-rate Cash ISA bonds — several providers offer competitive rates inside an ISA wrapper.
Rates correct as of April 2026. Check MoneySavingExpert or Moneyfacts for the most current rates.