Post Office Money Fixed Rate Bonds

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Best 2 Year Fixed Rate Bonds

Compare two year fixed rate bonds

The comparison chart below shows the best interest rates available for two year fixed rate bonds. You can personalise the table below by specifying the size of your investment amount and whether you have a lump sum or want to make a monthly investment. If you're not looking for a fixed rate bond, you can also search for ISAs, easy access accounts or notice accounts.

Best 2 Year Fixed Rate Bonds

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Bank of London and The Middle East Premier Deposit Account (Anticipated Profit Rate)
Zenith Bank (UK) Ltd Raisin UK - 2 Year Fixed Term Deposit
QIB (UK) Raisin UK - 2 Year Fixed Term Deposit

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Isbank Raisin UK - 2 Year Fixed Term Deposit
Bank of London and The Middle East Premier Deposit Account (Anticipated Profit Rate)
Aldermore 2 Year Fixed Rate Account

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Hampshire Trust Bank 2 Year Bond (Issue 59)
Paragon Bank 2 Year Fixed Rate Savings Account

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Hampshire Trust Bank 18 Month Bond (Issue 12)
QIB (UK) Raisin UK - 18 Month Fixed Term Deposit

Note

Eligible deposits with UK institutions are protected by the Financial Services Compensation Scheme (FSCS) up to a maximum level of protection of £85,000 per person per institution. All new savings or bank accounts provided to UK customers are now covered by the FSCS.

Disclaimer

All rates subject to change without notice. Please check all rates and terms before investing or borrowing.

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A guide to two year fixed rate bonds

Leanne Macardle

At a glance

Two year fixed rate bonds offer a good medium-term savings option.
Make sure you can commit your money for the full term.
Most two year fixed rate bonds won't let you access your money early.

Why choose a two year fixed rate bond?

For savers looking for a medium-term home for their money, a two-year fixed rate bond can offer a reasonable interest rate, without tying up your money for too long. The best rates are usually offered by challenger banks.

What are the advantages of a two year fixed rate bond?

There can be many reasons why you might find a two year fixed rate bond an attractive option. Primarily, these will tend to offer better interest rates than, say a one year fixed rate bond or easy access account. In return for your agreement not to touch the funds you have deposited, the bank or building society can offer you a better rate that is fixed for the duration of the bond. For people who are able to put these funds aside for the duration, they offer a safe and consistent way of earning a decent return. However, it must be stressed that before investing, you are certain you will not need access to these funds – in many instances withdrawals will not be possible and even if they are there will be heavy penalties in terms of loss of any interest you may have already earned. On the other hand, you might feel that you could commit your money for longer and reap an even better return. In that case, you might want to consider a three year fixed rate bond.

Things to consider

When thinking about taking out a two-year fixed rate bond, you should also consider what you think will happen to interest rates over this period. If rates go up you could find that your bond is paying less than the top rates available and to make matters worse, it may be expensive or impossible to move your money before the end of the term to capitalise on better returns. If rates go down, or remain broadly the same, you'll earn more than if you had kept your money in the best-paying easy access account.

What sort of penalties are there for early access?

Simply put, in most instances you will not be able to withdraw the monies you have invested until the bond matures. Where withdrawals in full or in part are allowed, you'll find that you will be penalised by the loss of a significant amount of interest. In some cases, this can be all the profit you would have made up to the point that the withdrawal is made. Individual bonds will each have different rules on what is permitted, and you are strongly encouraged to take these into account before committing your funds.

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