The best 6 for you to choose from.
Best 2-Year Fixed Rate Bonds
Frequently Asked Questions
What Interest Rates Can I Expect for 2-Year Fixed Rate Bonds in the UK?
Interest rates vary between UK Banks. However, you can expect interest rates between 3.90% and 4.61%. Some places may offer higher rates at the end of your first fixed term to reinvest your savings.
Usually, the longer your fixed term, the higher the interest rates you’ll be offered. So, the longer you lock away your money, the more you’ll make from it.
What's the Difference Between an ISA and Fixed Rate Bond?
Both an ISA and a fixed rate bond are types of savings accounts. However, there are key differences between the two. Fixed-rate bonds offer more competitive rates, whereas ISAs have variable rates. Some other differences include:
Fixed rate bonds
- Interest is taxable unless you’re eligible for the personal savings allowance.
- You can’t withdraw your money until the end of the fixed term.
- You can only deposit a lump sum at the beginning of your term.
- The fixed interest rate means you’ll know exactly how much you’ll earn by the end of the fixed term.
- The maximum you can save is £20,000 per year.
- All money earned from an ISA is tax-free.
- The flexibility of making withdrawals; however, you may incur a fee.
Which are the Best 2-Year Fixed Rate Bonds at the Moment?
If you’re looking for the top fixed rate bonds with high-interest rates, amongst other great benefits, we’ve compiled a list of the top six two-year fixed rate bonds:
- Ford Money Fixed Saver with 4.50% AER annual interest rates.
- Smart Save 2-Year Fixed Rate Saver with 4.50% annual or 4.41% AER monthly interest rates.
- Oxbury Personal 2-Year Bond Account with a 4.58% AER annual interest rate.
- Atom Bank 2-Year Fixed Saver with a 4.65% AER interest rate.
- Vanquis Fixed Rate Savings Bonds with an interest rate of 4.60% AER.
- Cynergy Bank 2-Year Fixed Rate Bond with 4.66% AER interest rate.
Is It Better to Get a 2-Year or 5-Year Fixed Rate Bond?
The length of the fixed period for your fixed rate bond will determine how much interest is accrued. Usually, you’ll be offered a higher interest rate for a five-year fixed term than you would for a two-year fixed term.
If you want to maximise your savings and are happy not to touch your money for five years, then a five-year fixed rate bond would be ideal. However, if leaving your money for that long feels daunting, you can earn a reasonable interest rate from two-year fixed rate bonds.
Is a 2 Year Fixed Rate Bond a Good Idea?
A two-year fixed rate bond is a savings account that allows you to earn interest on your savings for a fixed period. They’re risk-free and ideal for maximising your savings by locking them away for two years.
A fixed rate bond guarantees increasing your savings, and you’ll know exactly how much you’ll come away with from the offset, so there are no surprises down the line. The only downside is that once your money is in the account, you can’t withdraw it until the end of the fixed term unless under exceptional circumstances.
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