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.
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.
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
More guides on Finder
Bank accounts for charities
Opening a bank account is one of the very first things you need to do when setting up a charity. Here we look at how to go about finding the right account, from comparing different options to saving on fees.
Types of bank accounts
Should you get a current account, a savings account, or both? What about joint accounts and premium accounts? Banking can be messy if you don’t know the jargon. This guide looks at the main types of bank accounts and what services they offer to help you figure out what you need exactly.
Audi S5 insurance group
Find out which insurance group the Audi S5 falls under and how much it costs to insure.
Best bridging loans: Compare rates and lenders
Learn how you can find the best bridging loan for your circumstances and discover more about the major UK lenders who offer them.
BMW 5 Series insurance group
Find out which insurance group the BMW 5 series falls under and how much it costs to insure.
Compare the best equity release rates
If you’ve decided to release some of the equity in your home, we explain how to find the best providers and rates.
Compare the best 3 year fixed-rate bonds
Discover how to find the best fixed-rate bonds and how this compares to other savings accounts.
Compare the best fixed-rate cash ISA
Discover how fixed-rate cash Isas work, how to find the best fixed-rate cash Isa and more.
Compare the best lifetime ISAs
Discover how a lifetime ISA works, how to find the best lifetime ISA and more.
Compare the best ISA rates for over-50s
If you’re over 50 looking for the best ISA rates, this guide will provide all the information you need
Ask an Expert