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Best 3 Year Fixed Rate Bonds

A 3-Year Fixed Rate Bond could be a good home for your savings if you don't require access to your funds in the next 3 years. Often Fixed Rate Bonds are a great compromise between shorter term Easy Access Accounts, and longer-term Fixed Rate Bonds. 

Ready to compare rates? Start your comparison below and personalise the table by specifying the size of your investment amount.

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Browse Fixed Rate Bond Terms

Best 3 Year Fixed Rate Bonds

Best 3 Year Fixed Rate Bonds

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We found 69 products in total, of which 11 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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  • Zenith Bank (UK) Ltd 3 Year Fixed Term Deposit
    AER
    4.67%
    Account Type
    Fixed
    Term
    3 Year Bond
    Interest Paid
    Anniversary
    Go To Provider's Site
  • Al Rayan Bank Raisin UK - 3 Year Fixed Term Deposit
    AER
    4.65%
    Expected Rate
    Account Type
    Fixed
    Term
    3 Year Bond
    Interest Paid
    On Maturity (Compounded Annually)
    Go To Provider's Site
  • RCI Bank UK 3 Year Fixed Term Savings Account
    AER
    4.65%
    Account Type
    Fixed
    Term
    3 Year Bond
    Interest Paid
    Anniversary
    Further Options ˅
    Go To Provider's Site
    AER
    4.65%
    Account Type
    Fixed
    Term
    3 Year Bond
    Interest Paid
    Monthly
    Go To Provider's Site
  • UBL UK Raisin UK - 3 Year Fixed Term Deposit
    AER
    4.63%
    Account Type
    Fixed
    Term
    3 Year Bond
    Interest Paid
    On Maturity
    Go To Provider's Site
  • Bank of London and The Middle East Premier Deposit Account (Anticipated Profit Rate)
    AER
    4.50%
    Expected Rate
    Account Type
    Fixed
    Term
    3 Year Bond
    Interest Paid
    Anniversary
    Go To Provider's Site
  • Buckinghamshire BS Issue 197 Fixed Rate Bond
    AER
    4.50%
    Account Type
    Fixed
    Term
    31.05.27
    Interest Paid
    Yearly
    Further Options ˅
    Go To Provider's Site
    AER
    4.50%
    Account Type
    Fixed
    Term
    31.05.27
    Interest Paid
    Monthly
    Go To Provider's Site
  • Isbank Raisin UK - 3 Year Fixed Term Deposit
    AER
    4.50%
    Account Type
    Fixed
    Term
    3 Year Bond
    Interest Paid
    Yearly
    Go To Provider's Site
  • Investec Bank plc 3-Year Fixed Rate Saver
    AER
    4.40%
    Account Type
    Fixed
    Term
    3 Year Bond
    Interest Paid
    Yearly
    Go To Provider's Site
  • Aldermore 3 Year Fixed Rate Savings Account
    AER
    4.15%
    Account Type
    Fixed
    Term
    3 Year Bond
    Interest Paid
    Anniversary
    Further Options ˅
    Go To Provider's Site
    AER
    4.15%
    Account Type
    Fixed
    Term
    3 Year Bond
    Interest Paid
    Monthly
    Go To Provider's Site
  • Leeds BS 3 Year Fixed Rate Bond (Issue 584)
    AER
    4.15%
    Account Type
    Fixed
    Term
    02.06.27
    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 3 year fixed rate bonds

At a glance

  • Three year fixed rate bonds are a good compromise between short and long-term fixed rate bonds.
  • As most bonds don’t allow early access to funds, make sure you won’t need your money for the next three years.
  • If early access is allowed, a considerable interest penalty is likely.

Why choose a three year fixed rate bond?

A three year fixed rate bond might be for you if you want to earn a top savings rate and are prepared to forego access to your money for the three year term. The best rates are usually offered by challenger banks.

Fixed rate bond considerations

The two most important things to consider when taking out a three year fixed rate bond are interest rates and how likely it is that you’ll need access to those funds invested within the three-year period.

Firstly, the interest rate you sign up to will be fixed for the duration of the bond. Therefore, if rates skyrocket during those three years, you might find yourself earning an interest rate that suddenly seems quite poor. On the other hand, if interest rates fall, you’ll have made a great investment earning a return that is much better than the majority of easy access accounts. Three year fixed rate bonds are considered a good trade-off between the security of a fixed rate product without locking your money away for the long-term.

Access to your cash

When taking out a fixed rate bond, you are usually not supposed to withdraw your cash for the term of the bond. Most three-year fixed rate bonds do not allow you access to your money once it’s been deposited until the bond matures. Where early withdrawals are allowed, a considerable interest penalty will almost certainly have to be paid.

Who offers the best three-year fixed rate bonds?

Many of the best rates available on three-year fixed rate bonds are offered by what is often referred to as ‘challenger banks’. These are normally, smaller, relatively unknown banks who are new to the market. However, they are just as safe as any of the high street, big-name banks and building societies. All the providers appearing on Moneyfactscompare.co.uk are part of the Financial Services Compensation Scheme. Therefore, you can be safe in the knowledge that the first £85,000 you have saved is protected if the bank or building society were to go bust.

 

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Ashley Seager

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Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.

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