Reasons why you might want to consider a fixed rate bond include:

  • Guaranteed interest rate: the interest rate you’re offered when you open the account stays the same for the duration of the bond, so you can work out how much interest you’ll earn overall
  • Higher interest rates than an easy access account: fixed rate bonds often offer higher interest rates than easy access savings accounts in return for their lack of flexibility. With easy access accounts, you can access your money and pay in more money whenever you need to, but will often earn a lower rate, which can change at any time
  • Higher interest rates for longer terms: if you can afford to leave your money untouched for longer, you will usually receive a higher interest rate
  • FSCS protection: a fixed rate bond is a savings account, which means the Financial Services Compensation Scheme (FSCS) will cover up to £85,000 of your deposit if the bank or building society goes out of business. The FSCS will also cover the interest you’ve earned up until that point – provided the total amount in the account is still under £85,000. You will need to check that your fixed rate bond provider features the FSCS logo to make sure your deposit is protected