3 Year Fixed Rate Business Bonds UK

Note

Eligible deposits with UK institutions are protected by the Financial Services Compensation Scheme up to a maximum level of protection of £85,000 per business per institution. The deposits of most non-financial services businesses are covered up to the £85,000 limit.

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3 year business bonds explained

Is fixing for three years a good idea?

Fixing for three years can be ideal if you’re after a medium-term home for your business savings. It allows you to effectively plan ahead as you know exactly how much interest you’ll earn at the end of the three-year period, and you won’t need to tie up your money for longer to secure a decent return.

However, because the money cannot be accessed before the end of the term, it’s often advisable to have alternative savings options as well. This means a short-term bond of a year or less could be considered, as well as an easy access account for funds that need to remain accessible. Having a few different options in your business savings portfolio can ensure your money is working as hard as possible, earning interest in a variety of different ways.

Can I withdraw my savings during the term?

Rarely. Most providers won’t allow earlier access to your funds and you won’t normally be able to add to your savings pot either, though some will grant further additions for a limited period. This means you need to be confident you won’t need to access your cash for the full three-year term. Bear in mind too that minimum deposit requirements can be higher than for personal savings accounts, so it’s important to make sure you’ve got sufficient funds elsewhere to effectively manage your business’ needs.

Can the interest rate change during the term?

No. A fixed rate means it’s guaranteed to stay the same for the duration of the term, offering rate security and the chance to accurately plan your business’ financial future. Interest will typically be paid yearly on these accounts, though there can be other options available, with some providers paying interest monthly or on maturity.

Which bank offers the best rate?

This can vary, which means it’s essential to stay up-to-date by regularly comparing the options on our business bond charts. Bear in mind that different banks and building societies will have different criteria (such as the type of business the account is open to, minimum or maximum turnover amounts, etc.) as well as different account management options, so make sure to factor these considerations into your decision. Our chart can help you find the deal that’s right for you by highlighting all of these features and more, so start your comparison to find the best three-year business savings bonds in the UK.