Best 2 Year Fixed Rate Bonds
We found 139 PRODUCTS in total, of which 24 are EASY TO OPEN
Chetwood Bank 2 Year Fixed Rate Savings Account
Afin Bank 2-Year Fixed Term Account (Issue 1)
JN Bank Fixed Term Savings Account
4.25%
Fixed
1 Year Bond
Anniversary
Online
Online, Telephone
RCI Bank UK 2 Year Fixed Term Savings Account
Chetwood Bank Flagstone - 2 Year Fixed Term Deposit
Save smarter with Raisin UK.
Close Brothers Savings Fixed Rate Bond
Zenith Bank (UK) Ltd Raisin UK - 2 Year Fixed Term Deposit
Save with confidence using Afin Bank’s Fixed Term Savings Accounts. Choose from 1-year or 2-year terms with a fixed rate.
Investec Bank plc 2-Year Fixed Rate Saver
National Bank of Egypt (UK) Limited Raisin UK - 2 Year Fixed Term Deposit
AlRayan Bank Raisin UK - 2 Year Fixed Term Deposit
Eligible deposits with UK institutions are protected by the FSCS up to £85,000 per person per institution. Covers all new UK bank and savings accounts for UK customers.
DisclaimerAll rates subject to change without notice. Please check all rates and terms before investing or borrowing.
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A two-year fixed rate bond is a savings account that pays a guaranteed rate of interest for two years but, in return, you won’t be able to access your money during this period.
You may be able to open a two-year fixed savings account with less than £100, but other accounts require a larger minimum deposit of £10,000, for example. Many fixed bonds only allow you to make one deposit at the point of opening and, if they do permit further deposits, you may only have a few days to add to your savings pot.
Once in the account, your money will start to earn interest and, as the rate won’t change for the two-year period, you will receive a guaranteed return on your savings. However, you won’t normally be able to withdraw any money from your account until the end of the two-year term.
*Recent volatility means the gap between fixed and variable accounts has narrowed. In some instances, this has resulted in the rates offered by easy access and notice accounts outperforming those paid by fixed accounts.
As with other fixed accounts, most two-year bonds require a minimum deposit when opening, which can typically range from £1,000 to £25,000. Some providers may accept smaller minimum deposits of less than £100.
Many providers only allow you to make one deposit into a two-year bond on opening and, even if further deposits are permitted, this will normally only be for a limited period.
Unfortunately, you don’t have much choice if you want to access your savings before the end of the two-year fixed term. Most accounts don’t allow you to withdraw from your savings until the fixed term ends so, if you need the money, you will have to find another way to get the funds you require.
This is why it’s so important to only put money into a two-year bond that you’re certain you won’t need to use during this period.
A handful of two-year bonds may allow earlier access, but this will usually incur a loss of interest penalty charge.
When a two-year bond, or any fixed-term account, is approaching the end of its term, your provider will contact you to discuss what happens next.
At this point you could decide to withdraw your money or reinvest it into another account. If your account pays interest on maturity, your provider will also pay you the earnings you have accumulated over the two years.
It’s important to note that, if you don’t tell the provider what you want to do with your money, the provider may automatically place your money back into a similar fixed account or into a low-paying variable account, for example.
Accounts with longer fixed terms usually offer higher returns than their shorter-term counterparts, although volatility in the savings market can mean this isn’t always the case.
In August, at the time of writing, the leading two-year bonds pay slightly higher rates than the top one-year bonds but lower rates than the top five-year bonds.
In comparison to the wider savings market, higher returns can be found with variable accounts, though keep in mind these rates could change, unlike fixed bonds.
Whether fixed bonds are a good investment for you now will depend on your individual situation and your personal finance goals, as well as what’s happening in the wider economy.
If interest rates are predicted to fall over the next two years, locking into a two-year bond can protect your money from these drops in rate. However, many elements influence savings rates which can make it difficult to predict which direction they will go.
Below are some of the factors that can affect interest rates on fixed bonds, which could help you work out whether a fixed bond is worth taking out.
Staying up-to-date with the latest savings rates is crucial when deciding whether to open a fixed bond, as this ultimately decides how much you’ll earn on your investment. You can use the filters on the chart above to sort by rate order to see what account is currently offering the highest returns.
The Bank of England’s Monetary Policy Committee (MPC) sets the base rate, which is the central interest rate for the UK. While it has a considerable influence over variable rates, a change to the base rate can eventually trickle down to the fixed market. In August 2025, the Bank voted to lower the base rate to 4.00%, which may cause savings rates to drop over the coming weeks and months.
It’s worth factoring in the rate of inflation when deciding to invest in a fixed bond. Inflation affects the base rate but also affects how much your money is worth in real terms. Putting your savings into an account paying an inflation-beating interest rate means your money is continuing grow, even accounting for the impact of inflation.
Keeping up-to-date with the latest financial news and market forecasts can provide some insight into whether fixed rates will rise or fall, and so help you decide where to deposit your savings, although this isn’t a guarantee.
Before opening a two-year fixed rate bond, it’s worth thinking about:
One of the most important points to consider when looking for the best two-year fixed bond is the interest rate, which ultimately decides how much you’ll earn over the course of your investment.
However, also make sure to consider the eligibility criteria and if there are any specific requirements such as a linked current account.
What’s more, some accounts can include additional features, which may be worth paying attention to. This could include the ability to add to your pot for a limited time.
Our ‘full search’ tool on our charts can help you compare other aspects of an account, including how it can be opened and managed as well as how often interest is paid.
When you’ve chosen an account, you will need to open it using the provider’s available method(s). This could be online, in branch, by post, by phone or via mobile app, for example.
When opening an account, you will need to provide a range of personal information, which could include your:
Finally, you will need to make your deposit (or multiple deposits, if allowed) into the account.
As of the middle of August, the best 2 year fixed rate bonds pay over 4.40% AER. This can change so check the chart above for the latest rates.
In addition to the interest rate, the best two-year bond for you will also depend on:
As with any non-ISA savings account, basic-rate taxpayers can earn up to £1,000 in interest each tax-year before paying tax, as part of their Personal Savings Allowance (PSA). This limit then falls to £500 and £0 for higher-rate and additional-rate taxpayers respectively.
While this allowance may be sufficient for some savers, those with larger sums in savings (particularly higher- or additional-rate taxpayers) may find they need to pay tax on the interest they earn.
How often you choose to have interest paid can also affect your tax implications.
For example, say you invested a £15,000 lump sum into a two-year bond paying 4.00% AER yearly. After the first year, you’d earn £600 in interest which, for the basic-rate taxpayer, is within their PSA.
However, if interest is paid on maturity, all the interest earned would be paid at the end of the term. Using the example above, you would earn £1,224 in interest after two years, which is above the tax-free limit available under the PSA.
Use our lump sum savings calculator to see how much interest you could earn.
When comparing two-year fixed rate bonds using our chart, you can be sure your savings are safe in any account that displays the ‘FSCS Protected’ badge in the right-hand corner of the listing.
The Financial Services Compensation Scheme (FSCS) protects funds up to £85,000 should a provider go bust. However, it’s important to note this amount applies to any money held under one banking licence and not per account.
You can find out which banks and building societies share a banking licence with our guide to who owns whom. To check if your money’s protected, visit the FSCS website.
As previously mentioned, the FSCS protects up to £85,000 of your funds (held with a single banking licence) in the event that your provider goes bankrupt.
Note, you won’t be covered if the provider wasn’t authorised by the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA).
There aren’t any specific two-year bonds designed for savers aged 60 or over, so the best account will be the one that offers the most competitive rate and that meets your requirements.
When selecting an account, think about how much you want to deposit, whether you want interest paid out to supplement your income and how you prefer to manage your savings. Some two-year bonds may only be available by downloading a mobile app, but other accounts are available online, by phone or in-person by visiting a branch.
You can use the FCA Register to check if your provider is covered by the FSCS. You can also see if a provider shares its banking licence with another institution by clicking on ‘View Further Details’ next to each listing on our charts.
If the interest you earn on your savings is at risk of breaching your PSA, you may want to consider a two-year fixed rate ISA as an alternative to a two-year bond. With this type of account, any interest earned is automatically exempt from being taxed.
Meanwhile, if it’s likely you’ll need to dip into your savings in the near future, you could opt for an easy access savings account or notice account instead.
There are many different fixed terms available to suit a variety of needs and savings goals; these can range anywhere from bonds of less than one-year to bonds of five years or more.
If you’re interested in two-year bonds, why not also consider terms of a similar length, such as a one-year bond, 18-month bond or three-year bond?
Yes, you can open as many fixed bonds as you like, though keep in mind this could mean locking away more of your money.
For example, as well as a 2-year bond, you could choose to put some of your money into a shorter-term bond and a longer-term bond.
Spreading your savings across various fixed terms, known as laddering, means you can access a portion of your savings at regular intervals as each bond matures. This could be used to bolster your income or re-invested into new bonds to continue growing your savings.
Note that laddering requires keeping a close eye on your savings, so you’re always aware of when each term matures. Furthermore, if you plan to re-invest, there is always the risk that rates could be lower than when you originally opened the accounts.
Whether a 2-year bond is worth it will entirely depend on your individual circumstances. These accounts can offer a middle ground to savers as they guarantee returns on your money for more than one year without locking away your savings for as long as three or five years, for example.
This depends on how long you’re comfortable locking away your savings for and whether you want the security of earning a guaranteed return for longer. It comes down to if you want the peace of mind of having your interest protected in the event of rate cuts, at the expense of having to lock away your money for an extra year.
No. As with any fixed rate bond or ISA, the length of the term is locked and cannot be changed.
Yes. This is because you lock in your rate from the moment you open the account, meaning high inflation can erode the value of your investment over time. Simply put, the closer the rate of inflation is to the rate on your account, the less your pot will grow in real terms.
Our charts allow you to compare fixed rate bonds of all term lengths, ranging from three months to five years.
Alternatively, our weekly savings roundup can provide an overview of the current top performing accounts.