Fixed-rate savings accounts
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Important: This guide provides general information, not personalised financial advice. Financial products, rates and eligibility rules can change, so check the provider’s current terms before applying. Some links are referral links — we may earn a commission. You can check a firm’s details on the FCA Register.
FSCS protects eligible deposits up to £120,000 per person, per authorised institution.
Quick answer
A fixed-rate savings account — often called a fixed-rate bond — pays a set rate for a fixed term, such as six months, one year or five years. You usually can’t access the money until the term ends.
Unlike a cash ISA, interest on a fixed-rate savings account can be taxable if it goes over your Personal Savings Allowance. Some fixed accounts pay all the interest at the end of the term, which can push more of it into one tax year.
Fixed-rate savings rates by term
AER rates checked on each provider’s own website on 3 October 2026.
| Term | Atom bank Fixed Saver | Shawbrook Fixed Rate Bond |
|---|---|---|
| 6 months | 4.55% | Not listed |
| 9 months | 4.55% | 3.98% |
| 1 year | 4.90% | 4.87% |
| 18 months | Not listed | 3.86% |
| 2 years | 5.10% | 4.96% |
| 3 years | 5.10% | 3.90% |
| 5 years | 5.20% | 5.25% |
| 7 years | Not listed | 4.60% |
Rates as of 3 October 2026, taken from each provider’s own website. Variable rates can change at any time and fixed rates can be withdrawn, so check the provider before you apply. Atom bank shows a minimum deposit of £50 and a maximum of £100,000.
Who it’s for
- Savers with money they definitely won’t need for the term
- People who have already used their ISA allowance, or don’t need it
- Anyone who wants a guaranteed return on cash
Who should skip it
These are general points to weigh up, not advice. You may want to look elsewhere if:
- You may need the money before the term ends — look at easy-access savings
- Your interest would go over your Personal Savings Allowance and you still have ISA allowance — compare fixed-rate ISAs
- You don’t yet have an emergency fund
Full explanation
Fixed-rate savings trade access for certainty. Once the deposit window closes, the rate is locked for the term. That’s helpful if you think rates might fall, and frustrating if they rise.
Tax works differently from an ISA. Interest counts towards your Personal Savings Allowance — £1,000 for basic-rate taxpayers, £500 for higher-rate taxpayers and nothing for additional-rate taxpayers. Interest over that is taxed at your usual rate.
Check how interest is paid. Monthly or annual interest spreads it across tax years; interest paid only at maturity may all count in one year.
Eligible deposits are protected by the FSCS up to £120,000 per person, per authorised bank or building society. If you’re saving more than that, consider spreading it across separate banking groups.
Not sure whether to fix? Compare a fixed account with notice accounts or read easy-access or fixed-rate savings. You can model growth with our savings growth calculator.
The catch
Most fixed-rate bonds don’t allow withdrawals before maturity, or only allow them by closing the account with a penalty. You usually can’t add money after the deposit window closes. If rates rise during your term, you can’t move to the better deal without losing out.
Check the latest fixed rates and deposit limits on the provider’s own site.
Some links in this section are referral links. We may earn a commission if you use them, at no extra cost to you.
Some links in this table are referral links. We may earn a commission if you use them, at no extra cost to you. Rankings are based on our review methodology, not commission.
FAQs
Is a fixed-rate bond the same as a fixed-rate savings account?
Yes, the terms are generally used for the same thing: a savings account with a fixed rate for a fixed term.
Can I take money out of a fixed-rate savings account?
Usually not until the term ends. Some providers allow early closure with a penalty, and some don’t allow it at all.
Is interest on fixed-rate savings taxed?
It can be. Interest counts towards your Personal Savings Allowance, and anything above it is taxed at your usual rate.
What happens at the end of the term?
The provider usually writes to you before maturity. If you don’t choose what to do, the money may move into a lower-paying account.
Should I fix for one year or five?
It depends on when you’ll need the money and how you feel about rates changing. Longer terms don’t always pay more, so compare each term.
Is my money protected?
See Full explanation above.
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