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.
Compare the best 3-year fixed-rate bonds
Discover how to find the best 3-year fixed-rate bonds and how this compares to other savings accounts.
Here’s what you need to consider if you’re thinking about locking your money away in a 3 year fixed rate bond, including the pros and cons and how to choose the one that suits you best.
Compare 3-year fixed-rate bonds
Table: sorted by interest rate, promoted deals first
How to find the best 3-year fixed-rate bonds
The only real factor you need to consider when choosing the best 3-year fixed-rate bond is the interest rate on offer.
You can find the best-paying 3-year fixed-rate bonds using any price comparison website.
There are other differences, including customer service and terms regarding the early withdrawal of your funds, but for most savers, these pale in comparison to the interest rate on offer.
Which are better: bonds or ISAs?
These two savings mechanisms are similar in most ways.
Although bonds are a contract where you agree to lend money to a third party and ISAs are a traditional savings account, they both offer similar interest rates and they both prohibit you from withdrawing your money early.
A key difference is the limits on the amount of money you can deposit. With ISAs, you’ll be given an annual limit (it’s £20,000 in the 2020/21 tax year). With fixed-rate bonds, there may be a maximum savings amount applied by the savings provider.
Another difference is you won’t pay tax on savings interest earned within an ISA. This isn’t as much of a big deal these days though. After all, with the introduction of the personal savings allowance, basic-rate taxpayers and higher-rate taxpayers can earn £1,000 and £500 of tax-free savings interest per year respectively. So, now it’s just the country’s highest earners who would have to pay significant interest on savings either way.
Pros and cons of fixed-rate bonds
Pros
- Earn interest on your savings.
- You can deposit more money compared to an ISA.
Cons
- You may have to pay tax on interest earned.
- To get the best rates, you’ll have to lock up your funds for a few years.
Bottom line
If you’re willing to lock up your money for a few years, fixed-rate bonds are a good tool for saving a lot of money.
Frequently asked questions
More guides on Finder
-
Saab 9-3 insurance group
Find out which insurance group the Saab 9-3 falls under and how much it costs to insure.
-
Mitsubishi ASX insurance group
Find out which insurance group the Mitsubishi ASX falls under and how much it costs to insure.
-
Porsche Cayman insurance group
Find out which insurance group the Porsche Cayman falls under and how much it costs to insure.
-
Porsche 911 insurance group
Find out which insurance group the Porsche 911 falls under and how much it costs to insure.
-
Compare business bank accounts
Discover what business bank accounts offer and how to compare them to find the best account for you.
-
Mazda 5 insurance group
Find out which insurance group the Mazda 5 falls under and how much it costs to insure.
-
Jeep Cherokee insurance group
Find out which insurance group the Jeep Cherokee falls under and how much it costs to insure.
-
Kia Soul insurance group
Find out which insurance group the Kia Soul falls under and how much it costs to insure.
-
Kia Venga insurance group
Find out which insurance group the Kia Venga falls under and how much it costs to insure.
-
Mercedes-Benz B-Class insurance group
Find out which insurance group the Mercedes-Benz B-Class falls under and how much it costs to insure.
Ask an Expert