9 Month Fixed Rate Bonds
A 9 month fixed rate bond might be right for you if:
You don’t need to access your savings for nine months
You want to know exactly how much you’ll earn at the end of the term
You’d like to protect your savings from any interest rate changes over the next nine months
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Why should I choose a 9 month fixed rate bond?
If you’re looking to earn a competitive rate of interest on your savings but don’t want to lock your money away for more than a year, a 9 month fixed rate bond may be a good option.
The returns on fixed rate accounts (also known as fixed term deposits) are typically higher than those available with easy access savings accounts or ISAs, plus you’ll have certainty that the rate won’t change for the duration of your term.
With a 9 month fixed rate bond you can enjoy competitive interest rates and will still be able to take advantage of any increases in the base rate after your bond matures.
Guaranteed return: 9 month fixed rate bonds pay a set rate of interest for nine months, regardless of whether the base rate changes
Restricted access: After you open a 9 month fixed rate bond, you won’t be able to access your initial deposit for the duration of the term
Savings goals: A 9 month fixed rate bond may be an ideal option if you want to earn a competitive interest rate without tying your money up for too long
What is a 9 month fixed rate bond?
A 9 month fixed rate bond is a type of savings account that pays a set rate of interest for nine months. Any money in a fixed rate bond is locked away for the specified term (in this case nine months), meaning you won’t be able to access your cash during this period.
The rate of interest you earn on your savings won’t change for nine months, irrespective of whether the Bank of England makes any changes to the base interest rate.
How do 9 month fixed rate bonds work?
If you decide a 9 month fixed rate bond is the best option for you, you’ll need to deposit a lump sum when you open the account. You can make several transfers into the account until you reach your desired deposit, but after this point, you won’t be able to make further payments for the duration of the term. You also won’t be allowed to access your savings until the bond matures after nine months.
As with many other types of savings accounts, there’s a minimum and maximum deposit when you open a 9 month fixed rate bond. The minimum deposit could be anything between £500 and £1,000, while the maximum deposit can be as high as £2,000,000.
It’s important to note, however, that only deposits up to £85,000 per individual, per banking group, are protected under the Financial Services Compensation Scheme (FSCS). That’s why most of the savings accounts you’ll find in the Raisin UK marketplace only allow you to deposit up to the £85,000 limit (or European equivalent).
How is interest paid on a 9 month fixed rate savings account?
The amount of interest you’ll earn on a 9 month fixed rate bond will be calculated as a yearly percentage, or annual equivalent rate (AER). How much interest you’ll receive depends on various factors, including:
- The amount you deposit
- The interest rate (AER)
- How the bank calculates interest.
Exactly when your interest will be paid depends on your chosen bank. Some institutions compound interest while others pay at the end of the fixed term. It’s a good idea to check when and how interest is paid before you sign up for any new savings product.
What are the benefits of a 9 month fixed rate bond?
One of the main benefits of a 9 month fixed rate bond is that you can earn a competitive rate of interest without tying up your cash for too long. As with other types of fixed rate savings accounts, you’ll also know exactly what rate of return you’ll get – perfect if you want certainty from your savings.
If you can afford to deposit a lump sum that you won’t need to access for nine months, a 9 month fixed rate bond could benefit you in the following ways:
- Your interest rate is fixed for nine months
- You’ll know how much interest you’ll earn
- It’s easy to plan
- Your deposit is protected from changes to the base interest rate.
Need more flexibility from your savings? If you can’t afford to lock away your savings for nine months, our notice accounts and easy access accounts may be a better option.
What happens at the end of the nine months?
When the term ends after nine months, your account will have ‘matured’. At this point, you can withdraw your savings, including any interest you’ve earned, and close the account. Alternatively, you can transfer your savings into another account or deposit the money into a new fixed rate bond with the same bank.
Can I lock my money in for longer than nine months?
Yes, longer-term options are available if you can afford to lock away your money for more than nine months.
At Raisin UK, we offer fixed rate bonds with one year, two year, three year and five year terms. The main benefit of longer durations is that they typically pay higher rates of interest, allowing you to earn more from your savings.
How to find the best 9 month fixed rate bond
As a rule of thumb, the best 9 month fixed rate bond for you will be the one that pays the most competitive interest rate for the lowest deposit amount. It’s also worth checking whether the bank offers compound interest, as this can help to grow your savings faster.
To find the best 9 month fixed rate bond, you’ll need to compare savings accounts from across the market. Take a look at the table at the top of this page to compare a range of fixed rate bonds in the Raisin UK marketplace.
Before you apply for any type of fixed rate bond, however, it’s important to review your budget plan and financial circumstances to ensure you can definitely afford to lock away a lump sum of money for a set period.
Are fixed rate bonds safe?
Yes, fixed rate bonds are a safe option for your savings. You won’t lose any money in a fixed rate bond and if you open an account with a regulated UK bank, you’ll have peace of mind that your savings will be protected by the FSCS. This covers deposits of up to £85,000 including interest per person, per banking group, or up to £170,000 for joint accounts.
The majority of the fixed rate bonds available in our marketplace include deposit protection. Deposits in savings accounts offered by our European partner banks are also protected under the equivalent European Deposit Guarantee Scheme (DGS).
It’s important to note that the FSCS limit applies to the total of the savings deposits you have within the same banking group. So even if you have multiple accounts with different brands, if they belong to the same group, you’ll still only be protected up to £85,000. You might therefore want to consider spreading your savings across different banking institutions if you have a particularly large sum of money you wish to deposit.
At Raisin UK, we’ll always let you know which banking group a fixed rate bond is being offered by, so you can make an informed decision about which savings account is best for you.
Open a 9 month fixed rate bond at Raisin UK
To open a 9 month fixed rate bond from one of our partner banks, simply register for a Raisin UK account. It’s free to do and only takes a few minutes.
You can then log in and compare a range of savings accounts with competitive rates of interest. Once you’ve made your decision, click to ‘apply’ for a savings account that works for you. We’ll let you know when your application is approved and you can then transfer your deposit, sit back and watch your savings grow.