Best bonds and bond rates

A savings bond, also called a fixed rate bond, is a savings account where you lock your money away for a set period, typically between 3 months and 5 years, in exchange for a guaranteed fixed interest rate. Unlike easy-access accounts, you generally can’t withdraw your money during the fixed term without paying a penalty.

Fixed rate bond rates change frequently in line with the Bank of England base rate. Our rankings above are based on real customer reviews of bond providers, and our comparison tables show you the latest available rates. For the highest rates, longer-term bonds (2–5 years) typically offer more than shorter fixes, though this isn’t always the case.

Yes, in the UK, fixed rate bonds and savings bonds are the same thing. Both refer to a type of savings account where you commit to locking your money away for a set period in return for a guaranteed interest rate. They’re different from government or corporate bonds, which are debt investments traded on financial markets.

Minimum and maximum deposits vary by provider. Most fixed rate bonds require a minimum deposit of £1 to £1,000 to open, and some set a maximum deposit cap (often £250,000 or more). FSCS protection covers up to £85,000 per person per banking licence, so if you have a large sum to save, it’s worth spreading it across multiple providers.

Most fixed rate bonds don’t allow early withdrawals, or charge a significant interest penalty if you do. This is why it’s important only to lock away money you’re confident you won’t need during the term. Some providers offer a limited number of penalty-free withdrawals, but this is rare so always check the terms before opening.

A Premium Bond is a savings product from NS&I (National Savings and Investments), the government-backed savings provider. Instead of earning interest, your money is entered into a monthly prize draw where you can win between £25 and £1 million tax-free. Your original deposit is always safe and can be withdrawn at any time.

Every £1 you put into Premium Bonds equals one bond, and each bond gets a unique number entered into the monthly prize draw. The more bonds you hold, the more chances you have to win. You can hold between £25 and £50,000 in Premium Bonds. Prizes are paid tax-free and don't count towards your Personal Savings Allowance. You can check whether you've won using NS&I's prize checker and withdraw your money whenever you want.

Premium Bonds are worth considering if you want a completely safe, government-backed place to keep your money with the chance of tax-free prizes. The current prize fund rate is equivalent to around 4% (check NS&I for the latest figure), but unlike a savings account, this is an average — you could win more, or nothing at all in a given year. They tend to work best for people who have already used their Personal Savings Allowance, as the prizes are tax-free regardless of how much you win.

A savings bond (or fixed rate bond) pays a guaranteed interest rate in return for locking your money away for a set period. A Premium Bond pays no interest at all and instead, your money is entered into a monthly prize draw. Savings bonds offer certainty; Premium Bonds offer the chance of a bigger (or smaller) return. Both are very safe: savings bonds are protected by the FSCS up to £85,000 per banking licence, while Premium Bonds are backed by the UK government with no limit.