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Best 18 Month Fixed Rate Bonds

An 18-month Fixed Rate Bond could be a good home for your savings if you don't need to access your funds for an 18-month period. Short term Fixed Rate Bonds currently offer better rates than most Notice Accounts or Easy Access Accounts.

Ready to compare rates? Start your comparison using the data below. You can personalise the table by specifying the size of your investment amount with the filters at the top of the chart. 

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Browse Fixed Rate Bond Terms

Best 18 Month Fixed Rate Bonds

Best 18 Month Fixed Rate Bonds

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We found 16 products in total, of which 4 have links to providers.

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Selecting ‘Provider Links First’ brings all products that you can apply for directly via Moneyfacts to the top of the chart in rate order. Products that do not have an ‘Go To Provider's Site’ button will appear below, again in rate order. Selecting ‘Rate’ will change the chart to list all products in rate order. Products that have ‘Go To Provider's Site’ links will still be in the list but in rate position.

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  • Al Rayan Bank Raisin UK - 18 Month Fixed Term Deposit
    AER
    4.85%
    Expected Rate
    Account Type
    Fixed
    Term
    18 Month Bond
    Interest Paid
    On Maturity (Compounded Annually)
    Go To Provider's Site
  • Bank of London and The Middle East 18 Months Premier Deposit Account
    AER
    4.60%
    Expected Rate
    Account Type
    Fixed
    Term
    18 Month Bond
    Interest Paid
    Anniversary
    Go To Provider's Site
  • Aldermore 18 Month Fixed Rate Savings Account
    AER
    4.50%
    Account Type
    Fixed
    Term
    18 Month Bond
    Interest Paid
    Anniversary
    Further Options ˅
    Go To Provider's Site
    AER
    4.50%
    Account Type
    Fixed
    Term
    18 Month Bond
    Interest Paid
    Monthly
    Go To Provider's Site
  • QIB (UK) Raisin UK - 18 Month Fixed Term Deposit
    AER
    4.05%
    Expected Rate
    Account Type
    Fixed
    Term
    18 Month Bond
    Interest Paid
    On Maturity
    Go To Provider's Site
  • Union Bank of India (UK) Ltd Fixed Rate Deposit
    AER
    4.95%
    Account Type
    Fixed
    Term
    18 Month Bond
    Interest Paid
    On Maturity
    Further Options ˅
    AER
    4.95%
    Account Type
    Fixed
    Term
    18 Month Bond
    Interest Paid
    Anniversary
  • Al Rayan Bank 18 Month Fixed Term Deposit
    AER
    4.85%
    Expected Rate
    Account Type
    Fixed
    Term
    18 Month Bond
    Interest Paid
    Quarterly
  • Allica Bank 18-Month Fixed Term Savings Account (Issue 11)
    AER
    4.85%
    Account Type
    Fixed
    Term
    18 Month Bond
    Interest Paid
    Anniversary
  • Charter Savings Bank 18 Month Fixed Rate Bond
    AER
    4.80%
    Account Type
    Fixed
    Term
    18 Month Bond
    Interest Paid
    Anniversary
    Further Options ˅
    AER
    4.80%
    Account Type
    Fixed
    Term
    18 Month Bond
    Interest Paid
    Monthly
  • Cynergy Bank Fixed Rate Bond
    AER
    4.80%
    Account Type
    Fixed
    Term
    18 Month Bond
    Interest Paid
    Anniversary
  • Tandem Bank 18 Month Fixed Saver
    AER
    4.80%
    Account Type
    Fixed
    Term
    18 Month Bond
    Interest Paid
    Anniversary
Depositor Protection

Eligible deposits with UK institutions are protected by the Financial Services Compensation Scheme (FSCS) up to a maximum level of protection of £85,000 per person per institution. All new savings or bank accounts provided to UK customers are now covered by the FSCS.

Disclaimer

All rates subject to change without notice. Please check all rates and terms before investing or borrowing.

Provider Links

‘Go To Provider's Site’ links are where we have an arrangement with a provider so you can move directly from our site to theirs to view more information and apply for a product. We also use ‘Speak to A Broker’ links where we have an arrangement with a preferred broker to move you directly to their site. Depending on the arrangement we may receive a modest commission either when you press a 'Go To Provider's Site' or 'Speak To A Broker' button, when you call an advertised number or when you complete an application following a link from our website.

A guide to 18-month fixed rate bonds

At a glance

  • 18-month fixed rate bonds can offer the ideal compromise between one and two-year deals.
  • You’ll be expected to commit your money for the full 18-month term.
  • The best rates are typically offered by challenger banks.

What is an 18-month fixed rate bond?

An 18-month fixed rate bond is an account that asks you to lock away a lump sum of money for 18 months in return for a fixed rate of interest. You normally won’t be able to add or withdraw funds during the term, and after the bond matures you’ll get your capital back plus any interest earned.

What are the advantages of an 18-month fixed rate bond?

The biggest advantage of an 18-month bond is that, because the rate is fixed, you’ll know exactly how much interest you’ll earn over the term. You’ll be protected from rate changes too, which can be particularly important during times of volatility in the market.

The rate is guaranteed and so won’t change during the 18 months, but if rates rise in that time you’ll be able to benefit relatively quickly. Plus, you may be able to earn more interest than with a one-year bond yet will only have to lock your money away for a few additional months, offering the ideal compromise.

What do I need to watch out for?

Most 18-month bonds won’t let you access your money before the end of the term, and among those that do, you’ll likely face a hefty interest penalty, which could override anything that you’d earned.

The fact that the rate is guaranteed can also be its downfall, as if rates go up over the period, you may be earning less interest than you’d otherwise be able to. Yet the security that an 18-month bond provides can often outweigh that risk, particularly given that such accounts will nearly always offer considerably higher rates than an easy access deal.

Who offers the best 18-month bonds?

The best 18-month bonds are typically offered by challenger banks, with few high street brands active in this sector of the market. Yet this also means that the interest available will normally be higher, but also that you might be expected to operate the account online or via app.

Use our comparison tool to find the best 18-month fixed rate bonds available.

Don’t recognise a fixed rate bond provider?

A trend in the one-year fixed rate bond market is for the best rates to be offered by smaller, less mainstream banks. These are referred to as challenger banks, however, you should not any have any concerns that your money is any less safe with one of these institutions than with one of the bigger, high street brands. All banks and building societies listed by Moneyfactscompare.co.uk are part of the Financial Services Compensation Scheme. As such, the first £85,000 you have saved is fully protected should the bank or building society fail.

Ready to compare today's bond rates? Click below to view the best 18 month fixed rate bonds at the top of the page.

 

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Ashley Seager

Digital Marketing Manager

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