Best 2 Year Fixed Rate Bonds

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.

Favourites

By clicking the heart icon next to each product will mark that product as a favourite. A product will be remembered as a favourite until you deselect it or for 14 days (assuming you have functional cookies enabled). There is an option to sort by ‘Favourites First’ which will bring your favourites to the top of the chart.

How does a two-year fixed rate bond work?

Like most fixed savings accounts, a two-year bond requires you to lock away your funds for a given amount of time. In return, a provider will offer an interest rate that is guaranteed not to change over the course of the term.

Some two-year fixed rate bonds can be applied for with as little as just £1, while others specify a more significant deposit of £10,000 or more. Although usually you won’t be able to withdraw from this amount, some providers may allow you to add to your savings pot for a short period after opening.

Once established, a two-year fixed bond will pay interest at regular intervals - often either monthly, quarterly, yearly or on anniversary. Alternatively, some accounts pay interest on maturity (when the term is complete), at which point you’ll also gain access to the rest of your cash.

^*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.

Is a two-year bond safe?

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.

Two-year fixed bond alternatives

If you gain enough interest to be at risk of breaching your Personal Savings Allowance (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.

What other fixed terms are available?

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?