Aldermore Bank - 5 Year Fixed Rate Account
Interest Rate (AER)
2.90%
Term Length
5 Years
Minimum Deposit
£1,000
| Provider | Account Name | Interest (AER) | Term | Min. Deposit | |
|---|---|---|---|---|---|
| United Bank UK | 5 Year Fixed Term Deposit | 3.01% | 5 Years | £2,000 | Details |
| State Bank of India | 5 Year Fixed Term Deposit | 2.90% | 5 Years | £10,000 | Details |
| Axis Bank | 3 Year Fixed Term Rate | 2.45% - 2.55% | 3 Years | £10,000 - £50,000 | Details |
| United Bank UK | 3 Year Fixed Term Deposit | 2.36% | 3 Years | £2,000 | Details |
| Aldermore Bank | 3 Year Fixed Rate Savings Account | 2.35% | 3 Years | £1,000 | Details |
| Axis Bank | 2 Year Fixed Term Rate | 2.00% - 2.10% | 2 Years | £10,000 - £50,000 | Details |
| United Bank UK | 2 Year Fixed Term Deposit | 2.06% | 2 Years | £2,000 | Details |
| Aldermore Bank | 2 Year Fixed Rate Savings Account | 2.00% | 2 Years | £1,000 | Details |
| Scottish Widows Bank | Fixed Term Deposit | 2.00% | 3 Years | £10,000 | Details |
| State Bank of India | 1 Year Fixed Term Deposit | 1.80% | 1 Year | £10,000 | Details |
| Aldermore Bank | 1 Year Fixed Rate Savings Account | 1.75% | 1 Year | £1,000 | Details |
| Axis Bank | 1 Year Fixed Term Rate | 1.55% - 1.70% | 1 Year | £10,000 - £50,000 | Details |
What Are Fixed Rate Bonds?
Fixed rate bonds reward savers who can commit funds for a set period—typically ranging from one to five years. In exchange for locking away your money, you receive a higher interest rate than standard savings accounts, and that rate remains guaranteed for the entire term.
This predictability makes fixed bonds attractive if you want to know exactly what your savings will earn. There's no guesswork about future rate movements affecting your return.
Understanding Bond Terms
The "term" refers to how long your money stays deposited. During this period, you generally cannot withdraw funds without penalty—often forfeiting several months' worth of interest or being required to close the account entirely.
Before committing, ensure you won't need access to these funds. If your financial situation might change, consider shorter terms or accounts with more flexible withdrawal options.
Minimum Deposit Requirements
Fixed bonds typically require an initial deposit, which can range from modest amounts like £500 to substantial sums of several thousand pounds. Most providers don't allow additional deposits after opening, meaning you need the full amount ready upfront.
If you're looking to build savings gradually through regular contributions, a monthly saver account would better suit your needs.
Rate Considerations
Interest rates fluctuate based on broader economic conditions. Opening a fixed bond during a low-rate environment might seem advantageous at the time, but if rates rise substantially during your term, you'll miss out on potentially better returns elsewhere.
Conversely, locking in a competitive rate before rates fall can prove beneficial. Consider the current rate environment and economic forecasts when choosing your term length.
How to Compare Bonds
Our comparison table displays key details to help you evaluate options:
- Provider: The financial institution offering the bond
- Account Name: The specific product, usually indicating term length
- Interest (AER): Annual Equivalent Rate, standardized for easy comparison regardless of how interest compounds
- Term: How long your money remains locked in
- Minimum Deposit: The initial amount required to open the account
Protection for Your Savings
UK deposit protection covers savings up to £85,000 per person, per financial institution. If you're investing more than this threshold, consider splitting funds across multiple providers to ensure full coverage.
For personalized guidance on structuring your savings strategy, consult a qualified financial adviser.