Business Bonds UK | Up To 1 Year Fixed Rate

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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Up to 1 year business bonds explained

Is fixing for up to one year a good idea?

Fixing for up to one year can be ideal for many companies, ensuring that any business cash can be comfortably earning interest without locking it away for too long. Terms can be from as little as one month, so even if you’ve got a big outlay coming up, the funds can still be working hard in the meantime.

The downside is that you won’t be earning interest for as long as if you opted for a longer-term deal, which means the amount you’ll earn will ultimately be lower. If you don’t mind locking your money away for longer, you may want to consider a one- or two-year business savings bond instead. That said, these short-term bonds can be a great way to help manage cashflow while still earning interest, and with plenty of terms to choose from there’s bound to be a deal to suit.

Can I withdraw my savings during the term?

No. Fixed rate business bonds operate in the same way as those for personal funds, which means once you’ve deposited your initial lump sum of money, it’s locked away until the end of the term. Bear in mind that minimum deposit requirements for up to 1 year business bonds will typically be higher than for personal accounts, and you’ll likely have additional criteria to adhere to as well, such as turnover and company requirements.

Can the interest rate change during the term?

No. The key advantage of a fixed rate account is that the interest rate cannot change during the term of the bond, which means you’re guaranteed to earn a set amount of interest. Interest is typically paid on maturity for up to 1 year business bonds, but some offer other options.

Which bank offers the best rate?

Banks and building societies are competing for your business, which means the best rates available can change rapidly, often on a daily basis. Our chart highlights the best business bonds on offer in the UK, including well-known brands such as Virgin Money and Lloyds Bank, as well as more niche providers like Aldermore, Triodos Bank and ICICI Bank UK. Note that it’s often these smaller challenger banks that are able to offer the best rates, so make sure to consider them in your search. Start your comparison today.