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Fixed rate & fixed term savings accounts

Do you have a lump sum of money to deposit and are looking for a savings account with a competitive interest rate? A fixed rate savings account (also known as a fixed term savings account or fixed rate bond) could be right for you. Fixed rate savings accounts are a particularly good consideration during times of uncertainty, as they provide a secure way to benefit from competitive interest rates without risking your savings.

What is a fixed rate savings account?

What is a fixed rate savings account?

A fixed rate savings account locks your money in at a fixed rate of interest for a certain period of time, usually one, two, three or five years, as well as six month terms. The length of time (term) that’s best for you will depend on your savings needs. Whichever term you choose, a fixed term savings account is risk-free and guarantees a competitive rate of interest.

Fixed rate savings accounts with longer terms typically offer higher rates of interest than those with shorter terms, which you may want to consider when choosing the best fixed rate savings account for you. For example, the best six month fixed rate interest in our marketplace is 0.45%, and the best five year fixed rate interest is 0.95%.

What is the difference between a fixed term savings account, a fixed rate savings account and a fixed rate bond?

There is no difference between a fixed term savings account, a fixed rate savings account and a fixed rate bond. They are simply different names for the same type of savings account. Typically, you’ll see fixed rate bonds referred to as such on, but you will see them referred to as fixed term deposits as well.

How do fixed term savings account work?

You can open a fixed term savings account with a lump sum deposit. There’s usually a minimum and maximum deposit amount, typically from £500 for a minimum deposit and up to £2,000,000 for a maximum deposit. At Raisin UK, we want to keep your savings safe, so the maximum amount you can deposit is £85,000 per person, per banking group. This means your money will be protected through the applicable deposit protection scheme.

When you apply for a fixed term savings account through our marketplace, you can make as many transfers as you want to meet your initial deposit amount, but it isn’t possible to make any further deposits after your initial deposit, nor can you usually close this type of account before it matures at the end of the fixed term.

What are the benefits of fixed rate savings accounts?

A high interest fixed savings account might be a good option for you if:

  • You need complete confidence that your savings are safe
  • You want to know exactly how much interest you’ll earn
  • You won’t need access to your deposit before your account matures
  • You could be tempted to spend your deposit

What fixed rate terms are available?

You can find the best fixed term savings account for you by comparing accounts from a range of UK banks in our marketplace:

If you need more flexibility from your savings account, a notice account might be a better option for you.

How is interest on fixed rate savings accounts calculated?

Interest on fixed term savings accounts is calculated as a yearly percentage, or annual equivalent rate (AER). The amount you’ll earn from a fixed rate bond depends on the following factors:

  • The length of your fixed term
  • Your deposit amount
  • The interest rate (AER)
  • How the bank calculates interest

Will I be taxed on my savings?

UK taxpayers can earn interest on savings up to set amounts without paying tax. Basic rate taxpayers can earn up to £1,000 of interest per year, and higher-rate taxpayers up to £500.

Why a fixed term savings account from our marketplace might be right for you:

Choose from a range of fixed term savings accounts at, all of which feature the following benefits:

  • Risk-free savings
  • Earn fixed, competitive rates of interest
  • Higher interest rates on longer-term accounts
  • You’ll know when you can access your savings
  • It’s simple and easy to manage your savings online
  • Accounts are free to open
  • The FSCS protects your money up to £85,000 per person, per banking group

How to open a fixed rate savings account

The fixed rate savings accounts from our partner banks on our marketplace are free to open. The highest interest rate for a fixed rate savings account is currently 0.95% AER.

To open savings accounts from our partner banks you first need to register, then you can apply for fixed rate savings accounts in three steps:

  • Log in to your Raisin UK Account
  • Click to apply for a fixed rate savings account
  • Transfer your deposit

As soon as your application is approved, you can make your deposit and earn money from your savings straight away.

If you have any questions, please contact our UK-based Customer Services Team who will be happy to help.

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