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.

Thinking of getting a 5 year fixed rate bond? Here’s what you need to consider, including the pros and cons of locking your money away for five years, and how to compare and choose the one that suits you best.

Compare 5-year fixed-rate bonds

Table: sorted by interest rate, promoted deals first
Name Product Account type Withdrawals Min. opening balance Interest rate Apply link
ICICI Bank UK – Raisin UK - 5 Year Fixed Term Deposit
ICICI Bank UK
Fixed-rate bond
Withdrawals not permitted
£1,000
0.5% AER fixed for 5 years
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View details
Gatehouse Bank – Fixed Term Green Saver
Gatehouse Bank
Fixed-rate bond
Withdrawals not permitted
£1,000
1.4% AER fixed for 5 years

View details
Hodge Bank – 5 Year Fixed Rate Account
Hodge Bank
Fixed-rate bond
Withdrawals not permitted
£1,000
1.35% AER fixed for 5 years

View details
Hodge Bank – 5 Year Fixed Rate Account
Hodge Bank
Fixed-rate bond
Withdrawals not permitted
£1,000
1.35% AER fixed for 5 years

View details
Shawbrook Bank
Fixed-rate bond
Withdrawals not permitted
£1,000
1.31% AER fixed for 5 years

View details
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Compare up to 4 providers

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 that 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 earn 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 provides 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

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 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.

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