Fixed Rate Bond Calculator
Calculate how much you will earn from a fixed-rate savings bond. Compare different terms and rates.
How Fixed Rate Bond Calculator works
AER vs gross rate
AER (Annual Equivalent Rate) standardises rates for comparison purposes, accounting for compounding. Gross rate is the interest rate before tax and compounding adjustment. For a bond paying interest monthly, the gross monthly rate is lower than the AER. Use AER to compare products.
Fixed rate bonds vs easy access
Fixed-rate bonds typically pay higher rates than easy-access accounts in exchange for locking up your money for the term. You cannot usually access funds during the term without a penalty. Weigh the rate premium against your need for liquidity.
FSCS protection
UK savings up to £85,000 per person, per authorised institution are protected by the Financial Services Compensation Scheme (FSCS). If you have over £85,000 to save, spread it across multiple providers.
Frequently asked questions
What is a fixed-rate savings bond?
A fixed-rate bond is a savings account where you deposit a lump sum for a set period (typically 6 months to 5 years) at a guaranteed interest rate. You cannot usually access the money before maturity without a penalty.
Are fixed-rate bonds safe?
Yes, if held with a UK-authorised bank or building society. The FSCS protects deposits up to £85,000 per person per institution. Look for the FSCS logo or check the FCA register.
Should I lock money in a fixed rate bond or leave it in easy access?
If you will not need the money for the bond term, a fixed rate typically pays a higher rate. Easy access is better for emergency funds or money you might need. Compare the AERs when deciding.
What happens when a fixed rate bond matures?
At maturity, the bond pays out the deposit plus interest. Most providers automatically roll over into a new bond or move to an easy-access account if you don't instruct them. Set a reminder to compare rates and reinvest at the best available rate.
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