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Best 2 Year Fixed Rate Bonds

A 2-year fixed rate bond could be a good home for your savings if you don't need to access your funds in the next 2 years. Fixed rate bonds often offer better rates than notice accounts or easy access accounts.

Ready to compare rates? Using the chart below, start your comparison today. You can personalise the table below by specifying the size of your investment amount.

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Browse Fixed Rate Bond Terms

Best 2 Year Fixed Rate Bonds

Best 2 Year Fixed Rate Bonds

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We found 114 products in total, of which 16 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 - 2 Year Fixed Term Deposit
    AER
    4.92%
    Expected Rate
    Account Type
    Fixed
    Term
    2 Year Bond
    Interest Paid
    On Maturity (Compounded Annually)
    Go To Provider's Site
  • RCI Bank UK 2 Year Fixed Term Savings Account
    AER
    4.92%
    Account Type
    Fixed
    Term
    2 Year Bond
    Interest Paid
    Anniversary
    Further Options ˅
    Go To Provider's Site
    AER
    4.92%
    Account Type
    Fixed
    Term
    2 Year Bond
    Interest Paid
    Monthly
    Go To Provider's Site
  • Zenith Bank (UK) Ltd 2 Year Fixed Term Deposit
    AER
    4.90%
    Account Type
    Fixed
    Term
    2 Year Bond
    Interest Paid
    Anniversary
    Go To Provider's Site
  • Isbank Raisin UK - 2 Year Fixed Term Deposit
    AER
    4.75%
    Account Type
    Fixed
    Term
    2 Year Bond
    Interest Paid
    Yearly
    Go To Provider's Site
  • Emirates NBD HL Active Savings - 2 Year Fixed Term Deposit
    AER
    4.69%
    Account Type
    Fixed
    Term
    2 Year Bond
    Interest Paid
    On Maturity
    Go To Provider's Site
  • UBL UK Raisin UK - 2 Year Fixed Term Deposit
    AER
    4.68%
    Account Type
    Fixed
    Term
    2 Year Bond
    Interest Paid
    On Maturity
    Go To Provider's Site
  • Aldermore 2 Year Fixed Rate Savings Account
    AER
    4.60%
    Account Type
    Fixed
    Term
    2 Year Bond
    Interest Paid
    Anniversary
    Further Options ˅
    Go To Provider's Site
    AER
    4.60%
    Account Type
    Fixed
    Term
    2 Year Bond
    Interest Paid
    Monthly
    Go To Provider's Site
  • Bank of London and The Middle East 2 Years Premier Deposit Account
    AER
    4.60%
    Expected Rate
    Account Type
    Fixed
    Term
    2 Year Bond
    Interest Paid
    Anniversary
    Go To Provider's Site
  • Paragon Bank 2 Year Fixed Rate Savings Account
    AER
    4.59%
    Account Type
    Fixed
    Term
    2 Year Bond
    Interest Paid
    Anniversary
    Further Options ˅
    Go To Provider's Site
    AER
    4.59%
    Account Type
    Fixed
    Term
    2 Year Bond
    Interest Paid
    Monthly
    Go To Provider's Site
  • Paragon Bank HL Active Savings - 2 Year Fixed Term Deposit
    AER
    4.59%
    Account Type
    Fixed
    Term
    2 Year Bond
    Interest Paid
    Yearly
    Go To Provider's Site
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 two year fixed rate bonds

At a glance

  • Two year fixed rate bonds offer a good medium-term savings option.
  • Make sure you can commit your money for the full term.
  • Most two year fixed rate bonds won’t let you access your money early.

Why choose a two year fixed rate bond?

For savers looking for a medium-term home for their money, a two-year fixed rate bond can offer a reasonable interest rate, without tying up your money for too long. The best rates are usually offered by challenger banks.

What are the advantages of a two year fixed rate bond?

There can be many reasons why you might find a two year fixed rate bond an attractive option. Primarily, these will tend to offer better interest rates than, say a one year fixed rate bond or easy access account. In return for your agreement not to touch the funds you have deposited, the bank or building society can offer you a better rate that is fixed for the duration of the bond. For people who are able to put these funds aside for the duration, they offer a safe and consistent way of earning a decent return. However, it must be stressed that before investing, you are certain you will not need access to these funds – in many instances withdrawals will not be possible and even if they are there will be heavy penalties in terms of loss of any interest you may have already earned. On the other hand, you might feel that you could commit your money for longer and reap an even better return. In that case, you might want to consider a three year fixed rate bond.

Things to consider

When thinking about taking out a two-year fixed rate bond, you should also consider what you think will happen to interest rates over this period. If rates go up you could find that your bond is paying less than the top rates available and to make matters worse, it may be expensive or impossible to move your money before the end of the term to capitalise on better returns. If rates go down, or remain broadly the same, you’ll earn more than if you had kept your money in the best-paying easy access account.

What sort of penalties are there for early access?

In most instances you will not be able to withdraw the monies you have invested until the bond matures. Where withdrawals in full or in part are allowed, you’ll find that you will be penalised by the loss of a significant amount of interest. In some cases, this can be all the profit you would have made up to the point that the withdrawal is made. Individual bonds will each have different rules on what is permitted, and you are strongly encouraged to take these into account before committing your funds.

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Ashley Seager

Digital Marketing Manager

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