Compare the best 5-year fixed-rate bonds

Discover all you need to know about 5-year fixed-rate bonds, including how to find the best one for you.


Fact checked

How to find the best 5-year fixed-rate bonds

The only factor really worth considering is the interest rate.

You’ll find a bond with the best interest rate using any price comparison website.

Other differences between bonds include customer service and the terms regarding early withdrawal, although most savers would agree these pale in comparison compared to the returns on offer.

Are fixed-rate bonds a good investment?

Most fixed-rate bonds offer zero risk of losing any money.

Fixed-rate bonds and ISAs both tend to offer similar interest rates. ISAs offer tax-free savings interest, but under the current tax rules, only the UK’s highest earners are likely to enough interest to trigger a tax bill.

You’ll find the best interest rates on fixed-rate bonds with longer terms.

However, on these accounts, you run the risk of interest rates going up while your money is locked away at that fixed rate.

It’s also generally accepted that investing in securities provide better long-term returns, albeit with more volatility and a risk of losing money from your investment.

Still, all things considered, if you’re looking for an investment that offers zero risk, fixed-rate bonds are a good choice.

Pros and cons of fixed-rate bonds


  • Earn interest on your savings.
  • You can deposit more money compared to an ISA.


  • 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 happy to lock up your savings for five years with zero risk of losing money, fixed-rate bonds are a good place to put your money.

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

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • 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 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 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