cash stack icon

Best 5 Year Fixed Rate Bonds

Whether you’re saving towards a long-term goal or think interest rates will fall in the coming years, you may be considering a five-year bond. As suggested by the name, this type of account offers fixed returns for five years, meaning the interest rate you receive won’t change over the duration of this term.

Start comparing the best five-year fixed rate bonds on the UK market using our regularly updated chart below.

Advertisement

Browse Fixed Rate Bond Terms

Best 5 Year Fixed Rate Bond Rates

Best 5 Year Fixed Rate Bond Rates

Press to increase amount Press to decrease amount

We found 57 products in total, of which 13 have links to providers.

Press for help tip

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.

We are searching our databases for your products...

  • Shawbrook Bank 5 Year Fixed Rate Bond Issue 49
    AER
    4.57%
    Account Type
    Fixed
    Term
    5 Year Bond
    Interest Paid
    Anniversary
    Further Options ˅
    Go To Provider's Site
    AER
    4.57%
    Account Type
    Fixed
    Term
    5 Year Bond
    Interest Paid
    Monthly
    Go To Provider's Site
  • Al Rayan Bank Raisin UK - 5 Year Fixed Term Deposit
    AER
    4.55%
    Expected Rate
    Account Type
    Fixed
    Term
    5 Year Bond
    Interest Paid
    On Maturity (Compounded Annually)
    Go To Provider's Site
  • GB Bank Raisin UK - 5 Year Fixed Term Deposit
    AER
    4.55%
    Account Type
    Fixed
    Term
    5 Year Bond
    Interest Paid
    On Maturity
    Go To Provider's Site
  • Hampshire Trust Bank 5 Year Online Fixed Saver (Issue 37)
    AER
    4.55%
    Account Type
    Fixed
    Term
    5 Year Bond
    Interest Paid
    Anniversary
    Go To Provider's Site
  • UBL UK Raisin UK - 5 Year Fixed Term Deposit
    AER
    4.52%
    Account Type
    Fixed
    Term
    5 Year Bond
    Interest Paid
    On Maturity
    Go To Provider's Site
  • Bank of London and The Middle East 5 Years Premier Deposit Account
    AER
    4.30%
    Expected Rate
    Account Type
    Fixed
    Term
    5 Year Bond
    Interest Paid
    Anniversary
    Go To Provider's Site
  • Emirates NBD HL Active Savings - 5 Year Fixed Term Deposit
    AER
    4.10%
    Account Type
    Fixed
    Term
    30.07.29
    Interest Paid
    On Maturity
    Go To Provider's Site
  • Paragon Bank 5 Year Fixed Rate Savings Account
    AER
    4.05%
    Account Type
    Fixed
    Term
    5 Year Bond
    Interest Paid
    Anniversary
    Further Options ˅
    Go To Provider's Site
    AER
    4.05%
    Account Type
    Fixed
    Term
    5 Year Bond
    Interest Paid
    Monthly
    Go To Provider's Site
  • Aldermore 5 Year Fixed Rate Savings Account
    AER
    4.00%
    Account Type
    Fixed
    Term
    5 Year Bond
    Interest Paid
    Anniversary
    Further Options ˅
    Go To Provider's Site
    AER
    4.00%
    Account Type
    Fixed
    Term
    5 Year Bond
    Interest Paid
    Monthly
    Go To Provider's Site
  • Bank of London and The Middle East 7 Years Premier Deposit Account
    AER
    4.00%
    Expected Rate
    Account Type
    Fixed
    Term
    7 Year Bond
    Interest Paid
    Anniversary
    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.

How does a five-year fixed rate bond work?

Five-year fixed bonds offer an interest rate that is guaranteed to neither rise nor fall in exchange for locking away your savings for an agreed length of time. Depending on the account and provider, you’ll receive any returns on a regular basis (e.g. either monthly, yearly or on anniversary) or when the account matures - at which point you’ll regain access to your cash.

Some five-year fixed rate bonds can be applied for with as little as just £1, while others require a more substantial minimum deposit of £10,000 or more. Regardless of how much you’re looking to put away, be sure to consider your initial investment carefully, as withdrawals are not typically allowed.

 

Can you add money into a five-year fixed bond?

Whether you can add money to your five-year fixed savings account will vary from one provider to another. Many accounts accept deposits for a limited time after opening, but it’s not uncommon for some banks and building societies to impose greater restrictions (or prohibit further additions entirely).

To find out if you can add money to an account on our chart, select ‘view further details’ next to a listing.

Pros vs cons

  • The interest rate is guaranteed to remain the same for five years.
  • Traditionally, five-year bonds would offer higher rates than shorter terms and variable accounts*.
  • Withdrawals are usually prohibited, meaning you won’t have access to your cash for five years.
  • Some accounts won’t allow you to add to your savings pot.

*Some shorter-term bonds, easy access and notice accounts offer higher rates than five-year fixed bonds amid ongoing volatility in the savings market.

 

Is a five-year fixed rate bond safe?

All of the five-year fixed bonds shown on our charts are covered by the Financial Services Compensation Scheme (FSCS), so you can be sure your money is safe if a provider were to go bust.

However, even though the FSCS protects deposits of up to £85,000, it’s important to remember this upper limit includes funds held with any provider operating under the same banking licence (and is not per account).

Check which banks and building societies share a licence with our who owns whom guide or visit the FSCS website for more information on what is covered.

 

Alternatives to a five-year fixed bond

If you earn enough in interest from savings to exceed your Personal Savings Allowance (PSA), you could opt for a five-year fixed rate ISA as an alternative. As with all Individual Savings Accounts (ISAs), any returns are automatically exempt from being taxed.

Meanwhile, a Stocks and Shares ISA could be another option if you’re looking to grow a lump sum over a number of years and open to investing. This type of account offers the possibility of greater returns than a cash ISA in the long-run, but it’s important to remember this comes at the risk of losing money, as returns are not guaranteed. Typically, you should aim to stay invested for at least five years.

 

Alternative terms

While five-year bonds offer some of the longest fixed terms on the market, other terms are available that can suit a wide variety of needs and circumstances.

For instance, if you’re uncomfortable locking away your funds for five years, why not consider a two-year bond, one-year bond or even a bond of less than a year? Alternatively, a three-year bond could offer a middle ground.

Image of Ella Mower

Ella Mower

Senior Content Writer

Receive the latest news, straight to your inbox

All of our newsletters are available free by email to all Moneyfactscompare.co.uk users.

Send me Weekend Moneyfactscompare, Savers Friend, Companies Friend and selected third-party offers.

Moneyfactscompare guides

More guides
guides icon
Cash ISA vs Savings Account: Which Should I Choose?

Cash ISAs and savings accounts have some key differences, including their tax implications and rules around deposits and withdrawals. Find out more here.

Cash ISAs and savings accounts have some key differences, including their tax implications and rules around deposits and withdrawals.

Read More
guides icon
What are challenger banks?

They regularly top the savings charts and tend to have a reputation for offering great service too – but what is a challenger bank, and can they be trusted as an alternative to the established banking giants?

They regularly top the savings charts and tend to have a reputation for offering great service too – but what is a challenger bank, and can they be trusted?

Read More
guides icon
How can I save for the future of my child?

For a parent, knowing that your child has a financially secure future is bound to be one of your top priorities, which is why many like to begin saving for their child as soon as possible. Read our guide to learn more.

This guide tells you more about how to save for your children. We share tips about savings accounts to help save for university, a car or a first home.

Read More
guides icon
The ultimate guide to saving for your first home

Saving for a deposit can seem like a daunting task but there's plenty of practical steps you can take to boost your savings and cut your costs.

Saving for a deposit can seem like a daunting task but there's plenty of practical steps you can take to boost your savings and cut your costs.

Read More

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.

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.