If you already have savings that you don’t mind locking away for 1-3 years, they’re a great way of making more of your money in the long term.*
Fixed interest rates
- 1 year pays an interest rate of 4.00% Gross/AER (fixed)
- 2 year pays an interest rate of 3.85% Gross/AER (fixed)
- 3 year pays an interest rate of 3.75% Gross/AER (fixed)
On maturity, your Fixed Bond will mature into a Matured Funds Account, which currently pays a variable interest rate from 1.29% Gross/ 1.30% AER.
Summary box
| Term | Interest rate |
|---|---|
| 1 Year | 4.00% Gross/AER (fixed) |
| 2 Year | 3.85% Gross/AER (fixed) |
| 3 Year | 3.75% Gross/AER (fixed) |
Interest is calculated each day. You can choose to have your interest paid monthly or once a year on the anniversary of opening the account.
No, we can’t change the interest rate during the term of your Fixed Bond.
| Initial deposit | £2,000 |
|
| Fixed Bond - 1 Year | Interest earned at 4.00% Gross/AER (fixed) | £80.00 |
| Estimated balance after 12 months | £2,080.00 | |
| Fixed Bond - 2 Year | Interest earned at 3.85% Gross/AER (fixed) | £156.96 |
| Estimated balance after 24 months | £2,156.96 | |
| Fixed Bond - 3 Year | Interest earned at 3.75% Gross/AER (fixed) | £233.54 |
| Estimated balance after 36 months | £2,233.54 |
This is an example only and doesn't take into account your individual circumstances.
Ways to open |
|
| Who can open | You must be:
|
| Open with |
|
| Manage your account |
|
| Withdrawals allowed | No |
| Early closure allowed | No (except in the event of your death) |
- Accounts can be held in sole or joint names
- Interest is paid gross (without taking off tax)
- If you earn more interest than the Personal Savings Allowance, you may have to pay extra tax yourself
- The Personal Savings Allowance is £1,000 for basic rate taxpayers and £500 for higher rate taxpayers. Additional rate taxpayers don't receive a Personal Savings Allowance
- At least 30 days before the end of the term, we'll write to you asking what you'd like us to do with the balance in your account
- If you don't let us know before the end of the term (or we can't reasonably fulfil your instructions), we'll transfer the balance to a Matured Funds account or similar account if it is no longer available
- We'll send you full details when we write to you.
Rates and information correct as at 20/12/2024.
AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.
Gross rate is the contractual rate of interest payable before the deduction of income tax.
Important information
How to apply for a fixed rate bond
Already registered for Internet Banking?
- Log in and apply
Not yet registered for Internet Banking?
- Apply online
If you prefer to apply in branch or through telephone banking, you can book an appointment in advance.
Any questions?
A fixed rate bond is a type of savings account that gives you a set rate of interest for a chosen length of time, for example, you could choose to save into a 2-year fixed bond.
You won’t be able to withdraw your money during your fixed term, and in exchange for this certainty you’ll typically get a higher rate of interest than you might with an instant access savings account.
There’s no limit to how many fixed rate bonds you can have.
You won’t be able to make additional deposits into your fixed bond after the funding window has closed. You can open another fixed rate bond account if you want to add to your savings.
Whether you choose to save into a fixed rate bond is completely up to you. Some of the benefits include:
- A fixed rate of interest
- You can choose the set term
- You’ll know exactly how much interest you’ll receive at the end of your term
- No withdrawals makes it a good option for your long-term savings goals
No. Once you’ve opened a fixed rate bond, you have 10 days to deposit your money.
After those 10 days, you can’t add more money to that account. If you want to save more, then you could open another bond.
No, fixed bonds do not allow withdrawals or early closures.
The money you saved is only available once the fixed term has ended – you may see this referred to as when the “bond matures”.
When this happens, your money will move into a Matured Funds Account and you’ll be able to decide what to do with the money.
Yes, all TSB savings accounts are protected by the FSCS.
Find out more information on your savings account maturity options here
Important Information
*How do Bonds work
You need to be aged 16+ to open a Fixed Rate Bond
Deposits must be received within 10 working days of opening your account (minimum £1).
Once Bonds are opened no withdrawals are allowed.
You can have more than one Fixed Rate Bond.
Your interest can be paid annually or monthly.
Your savings will automatically move into a TSB Matured Funds account at maturity, unless you tell us you'd like to do something different with your money. Your account number and sort code will not change. You can access your money instantly by closing the account at any time. Interest is paid monthly and statements are issued annually upon anniversary of the TSB Matured Fund account opening.
The Annual Equivalent Rate (AER) shows what the interest would be if the interest was paid and added to the account once each year. It lets you compare savings accounts easily. Gross rate means that credit interest is paid without income tax being deducted. Tax-free is the contractual rate of interest payable where interest is exempt from income tax.
You need to be 16+ and UK resident to open most of our savings accounts with the exception of Savings Pots and TSB ISAs. For children under 16 please see specific pages for opening procedures.
