Skip to main content

Fixed Rate Bonds

If you already have savings that you don’t mind locking away for 1-3 years, they’re a great way of making more of your money in the long term.*

Fixed interest rates

  • 1 year pays an interest rate of 4.60% Gross/AER (fixed)
  • 2 year pays an interest rate of 4.35% Gross/AER (fixed)
  • 3 year pays an interest rate of 4.10% Gross/AER (fixed)

Summary box

Term Interest rate
1 Year 4.60% AER/Gross (fixed) 
2 Year 4.35% AER/Gross (fixed)
3 Year 4.10% AER/Gross (fixed)

Interest is calculated each day. You can choose to have your interest paid monthly or once a year on the anniversary of opening the account.

View previous rates

No, we can’t change the interest rate during the term of your Fixed Bond.

 

Initial deposit

£2,000

 
Fixed Bond - 1 Year Interest earned at 4.60% Gross/AER (fixed) £92.00
Estimated balance after 12 months £2,092.00
Fixed Bond - 2 Year Interest earned at 4.35% Gross/AER (fixed) £177.78
Estimated balance after 24 months  £2,177.78
FixedBond - 3 Year Interest earned at 4.10% Gross/AER (fixed) £256.22
Estimated balance after 36 months  £2,256.22

This is an example only and doesn't take into account your individual circumstances.

Ways to open

  • In branch
  • Online
Who can open

You must be:

  • 16 or over; and
  • A UK resident
Open with
  • £1 minimum opening balance 
  • Deposits must be received within 10 working days of opening your account
Manage your account 
  • In branch
  • Over the phone
  • Online
  • Mobile app

Withdrawals allowed No
Early closure allowed

No (except in the event of your death)

  • Accounts can be held in sole or joint names
  • Interest is paid gross (without taking off tax)
  • If you earn more interest than the Personal Savings Allowance, you may have to pay extra tax yourself
  • The Personal Savings Allowance is £1,000 for basic rate taxpayers and £500 for higher rate taxpayers. Additional rate taxpayers don't receive a Personal Savings Allowance
  • At least 30 days before the end of the term, we'll write to you asking what you'd like us to do with the balance in your account
  • If you don't let us know before the end of the term (or we can't reasonably fulfil your instructions), we'll transfer the balance to a Matured Funds account or similar account if it is no longer available
  • We'll send you full details when we write to you.

Rates and information correct as at 08/02/2024.

AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.

Gross rate is the contractual rate of interest payable before the deduction of income tax.


Important information

How to apply for a fixed rate bond

Already registered for Internet Banking?

  •     Log in and apply

Not yet registered for Internet Banking?

  • Apply online

If you prefer to apply in branch or through telephone banking, you can book an appointment in advance.


Any questions?

A fixed rate bond is a type of savings account that gives you a set rate of interest for a chosen length of time, for example, you could choose to save into a 2-year fixed bond.

You won’t be able to withdraw your money during your fixed term, and in exchange for this certainty you’ll typically get a higher rate of interest than you might with an instant access savings account. 

There’s no limit to how many fixed rate bonds you can have.

You won’t be able to make additional deposits into your fixed bond after the funding window has closed. You can open another fixed rate bond account if you want to add to your savings. 

Whether you choose to save into a fixed rate bond is completely up to you. Some of the benefits include:

  • A fixed rate of interest
  • You can choose the set term
  • You’ll know exactly how much interest you’ll receive at the end of your term
  • No withdrawals makes it a good option for your long-term savings goals

No. Once you’ve opened a fixed rate bond, you have 10 days to deposit your money.

After those 10 days, you can’t add more money to that account. If you want to save more, then you could open another bond.

No, fixed bonds do not allow withdrawals or early closures. 

The money you saved is only available once the fixed term has ended – you may see this referred to as when the “bond matures”.

When this happens, your money will move into a Matured Funds Account and you’ll be able to decide what to do with the money.

Yes, all TSB savings accounts are protected by the FSCS.


Important Information

*How do Bonds work

You need to be aged 16+ to open a Fixed Rate Bond

Deposits must be received within 10 working days of opening your account (minimum £1).

Once Bonds are opened no withdrawals are allowed.

You can have more than one Fixed Rate Bond.

Your interest can be paid annually or monthly.

On maturity, your Fixed Bond will mature into a Matured Funds Account, which currently pays a variable interest rate from 1.39% gross/1.40% AER.

Your savings will automatically move into a TSB Matured Funds account at maturity, unless you tell us you'd like to do something different with your money. Your account number and sort code will not change. You can access your money instantly by closing the account at any time. Interest is paid monthly and statements are issued annually upon anniversary of the TSB Matured Fund account opening.

The Annual Equivalent Rate (AER) shows what the interest would be if the interest was paid and added to the account once each year. It lets you compare savings accounts easily. Gross rate means that credit interest is paid without income tax being deducted. Tax-free is the contractual rate of interest payable where interest is exempt from income tax.