Compare the best 6-month fixed-rate bonds

Discover all you need to know about 6-month fixed-rate bonds and compare accounts with interest rates up to 3.5% AER.

If you’re looking to earn a higher return on your savings but you don’t want to lock away your funds for a lengthy amount of time, a 6-month fixed-rate bond could offer the perfect solution. Here, we explain how 6-month fixed-rate bonds work, along with their pros and cons.

FSCS logo
Is my money safe?

The Financial Services Compensation Scheme (FSCS) guarantees that it will step in to compensate the first £85,000 (£170,000 for a joint account) you have saved with a UK-authorised bank, building society or credit union in the event that the business goes bust.

Compare 6-month fixed-rate bonds

Table: sorted by interest rate
1 - 6 of 29
Name Product Interest rate Invest Interest paid Withdrawals Deposit protection Incentive Apply link
Zenith Bank (UK) Ltd – Raisin UK - 6 Month Fixed Term Deposit
Zenith Bank (UK) Ltd – Raisin UK - 6 Month Fixed Term Deposit
3.5% AER fixed for 182 days (on first £85,000)
£1,000 - £85,000
On maturity
Withdrawals not permitted
FSCS logo
protected
Go to site
View details
ICICI Bank UK – SuperSaver Bond
Additional account needed
ICICI Bank UK – SuperSaver Bond
3.5% AER fixed for 182 days
From £1,000
Quarterly
Withdrawals not permitted
FSCS logo
protected
Go to site
View details
ICICI Bank UK – SuperSaver Bond
Additional account needed
ICICI Bank UK – SuperSaver Bond
3.5% AER fixed for 182 days
From £1,000
On maturity
Withdrawals not permitted
FSCS logo
protected
Go to site
View details
ICICI Bank UK – SuperSaver Bond
Additional account needed
ICICI Bank UK – SuperSaver Bond
3.5% AER fixed for 182 days
From £1,000
Monthly
Withdrawals not permitted
FSCS logo
protected
Go to site
View details
Atom Bank – 6 Month Fixed Saver
3.45% AER fixed for 182 days
£50 - £100,000
On maturity
Withdrawals not permitted
FSCS logo
protected
Go to site
View details
Atom Bank – 6 Month Fixed Saver
3.45% AER fixed for 182 days
£50 - £100,000
Monthly
Withdrawals not permitted
FSCS logo
protected
Go to site
View details
loading

Compare up to 4 providers

How do 6-month fixed-rate bonds work?

If you open a 6-month fixed-rate bond, you’ll need to deposit a lump sum into the account and leave those funds untouched for the 6-month term. How much you need to deposit into the account varies depending on the provider – it could be £100, it could be £5,000. You won’t usually be able to top up these funds after your initial deposit.

You can’t typically make any withdrawals during the 6-month term, but in return you’ll receive a higher rate of interest compared to other savings accounts where you can access your money whenever required. What’s more, this interest rate will be fixed which means it won’t change during the term. After the 6 months is up, your account will mature and you’ll be able to withdraw your funds or have them transferred to another account.

Compared to a cash ISA’s you can generally open a bond account with a much larger sum (but the interest is taxable). If you’ve sold your house, say, and won’t need the resulting funds for at least 6-months, then this is a smart resting place. Stick to banks/building societies covered by the FSCS, and it’s an extremely safe option too.

How to compare fixed-rate bonds

When comparing fixed-rate bonds there are a number of factors to consider:

  • The interest rate. Fixed-rate bonds offer fixed rates of interest which means the rate can’t suddenly drop during the term. Ideally, you’ll want to hunt out the bond with the highest rate.
  • The deposit size. Make sure you check exactly how much money you need to pay into the account at opening. Deposits can vary depending on the provider, but if your lump sum isn’t high enough, you’ll need to find an alternative account.
  • The option to add more funds. Fixed-rate bonds won’t usually allow you to add further funds once you’ve made your initial deposit. But some providers will accept additional deposits until the bond is removed from sale.
  • The penalty fee. Some fixed-rate bonds will simply refuse withdrawals. Others will charge a penalty fee if you access your funds early, so make sure you check.

Are fixed-rate bonds a good investment?

Provided you’re confident you won’t need to get at the funds, they’re likely to be more rewarding home for your savings than an instant access account.

The rate’s guaranteed, so you know in advance what your savings will be worth at the end of the term. And if you think that market interest rates generally are on the rise, then it’s probably smartest not to lock in for several years at today’s rate.

Make sure you keep part of your savings in an easy-access account.

Pros and cons of 6-month fixed rate bonds

Pros

  • Earn a higher rate of interest compared to easy access accounts
  • Interest rate is fixed for the term of the bond
  • Ideal if you have a lump sum to invest
  • You’ll only be locking away your money for 6 months

Cons

  • No good if you need to access your money during the term
  • You won’t usually be able to add more money to the account
  • Interest rate will be lower compared to longer-term fixed-rate bonds

Bottom line

If you’re looking to earn a better rate of interest on your savings but you don’t want to lock away your funds for long, a 6-month fixed-rate bond could offer a good solution. Provided you have a lump sum to invest and you don’t need to access your funds for the 6-month term, a fixed-rate bond could work for you. Just make sure you check the terms and conditions of the account first.

Frequently asked questions

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

More guides on Finder

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site