Lock your money away for 1 year, 2 years, or 3 years and enjoy fixed rates for your chosen term.
Is a Fixed Rate Bond right for you?
This account is for:
- Locking away your money for 1, 2, or 3 years
- Securing an interest rate that won't change
- Saving a lump sum
This account is not for:
- Making withdrawals before the term is finished
- Someone looking to make regular saving deposits
How much could you earn in interest?
If you chose a 1 year term and put in £2,000 when you opened the account and made no further deposits, the balance after 1 year will be £2,071.00
Fixed Rate Bonds Summary Box
All the information you need to know about this savings account can be found here:
| Term | Annual AER/Gross (fixed) |
|---|---|
| 1 Year | 3.55% |
| 2 Year | 3.50% |
| 3 Year | 3.50% |
Interest payments
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.
| Fixed Bond - 1 Year | Interest earned at 3.55% Gross/AER (fixed) | £71.00 |
| Estimated balance after 12 months | £2,071.00 | |
| Fixed Bond - 2 Year | Interest earned at 3.50% Gross/AER (fixed) | £142.45 |
| Estimated balance after 24 months | £2,142.45 | |
| Fixed Bond - 3 Year | Interest earned at 3.50% Gross/AER (fixed) | £217.44 |
| Estimated balance after 36 months | £2,217.44 |
This is an example only and doesn't take into account your individual circumstances.
Ways to open |
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| Who can open | You must be:
|
| Open with |
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| Manage your account |
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| Are withdrawals allowed? | No |
| Is 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 21/11/2025.
1 year fixed rate
3.55% AER (Fixed)
2 year fixed rate
3.50% AER (Fixed)
3 year fixed rate
3.50% AER (Fixed)
If you prefer to apply in branch or over a video call, you can book an appointment in advance.
Fixed Rate Bonds FAQs
Fixed Rate Bonds are savings accounts where you deposit money for a set period of time, with no access available during the chosen term. You need to be aged 16+ to open a Fixed Rate Bond, and a deposit of at least £1 must be received within 10 working days of opening your account, all deposits must be made within the 10 day funding window.
You can have more than one Fixed Rate Bond, and your interest can be paid either once a year on the anniversary of opening the account or monthly.
Please visit our Fixed Rate Bonds page to learn more and open your account today.
Once you open a Fixed Rate Bond and deposit money within the funding window, no withdrawals or further deposits can be made until your chosen term period has passed. Upon maturity, we will notify you in advance with your options, and the product will convert to a Matured Funds account on the maturity date itself.
The benefits include knowing that you are earning a fixed rate of interest over a set period of time. However, you are not allowed to make withdrawals from a fixed bond and early closures are not permitted (except in the event of your death).
This depends on what the interest rate is when you open your account. Whatever the fixed bond rate is, it will remain fixed for the duration of your chosen term. Compare our latest fixed bond rates.
You are not allowed to make withdrawals from a fixed bond, and early closures are not allowed (except in the event of your death).
The best fixed bond for you depends on how much you want to save, the interest rate offered, and how long you are willing to invest your money for. We currently provide 1-year, 2-year and 3-year term options for fixed bonds. Please visit our Fixed Rate Bonds page for more information on the different accounts available.
The minimum opening balance for a Fixed Rate Bond is £1, and deposits must be received within 10 working days of opening your account. There is also a maximum limit of £1,000,000 on the amount that can be held in your account.
Yes. As the interest on fixed bonds is paid gross, you will have to pay tax on your interest unless stated otherwise. Most people can earn some interest on their savings without paying tax.
No. While both accounts include a fixed term and interest rate, a fixed bond does not allow for deposits or withdrawals until your chosen time period has passed. Funds in a Fixed Rate ISA, on the other hand, can be accessed upon paying withdrawal fees.
For further details on withdrawal charges and much more, please visit our Fixed Rate Bonds page.
There is no maximum limit on the number of Fixed Rate Bonds you can have in the UK. However, there is a £1 minimum opening balance for a fixed bond, and deposits must be received within 10 working days of opening your account. There is also a £1,000,000 maximum limit on the amount that can be held within each bond.
Early closure for a Fixed Rate Bond is not permitted, except in the event of your death.
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 Fixed Rate Bond. 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 or similar account.
Yes, you can open a fixed bond in branch, online or via the TSB Mobile Banking App.
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.
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. Statements are issued annually upon anniversary of the 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 is the contractual rate of interest payable before the deduction of income tax.
You need to be 16+ and UK resident to open most of our savings accounts with the exception of Savings Pots and TSB ISAs. For children under 16 please see specific pages for opening procedures.
