Fixed Rate Bonds

A fixed rate bond is a savings account where your money is locked away for a set period, earning a fixed interest rate. Unlike variable rate accounts, the interest rate does not change, so you know exactly how much your money will grow.

Fixed rate bonds at Shawbrook:

• Can be opened as either individual or joint accounts
• Term lengths available from 9 months to 7 years
• The minimum balance is £1,000, and savers can deposit up to £2 million per account

Fixed rate bonds are a good option for savers who want a predictable return and can leave their funds untouched during the term.

Both fixed rate bonds and fixed rate cash ISAs offer a guaranteed interest rate for a set term. However, fixed rate bonds differ from cash ISAs in several key areas.

Tax Benefits: With a fixed rate bond, the interest you earn may be subject to income tax depending on your Personal Savings Allowance and overall tax position. A fixed rate cash ISA, on the other hand, lets you earn tax-free interest on your savings. You can contribute up to your annual ISA allowance each year and continue to earn tax-free interest on funds from previous years and ISA transfers, allowing your total tax-free savings to grow beyond the annual limit.

Withdrawal Rules: When you take out a fixed rate bond, your funds are typically locked in until the end of the term, with no access permitted before maturity. Fixed rate cash ISAs, however, may allow early withdrawals or closure, but doing so will usually result in a loss of interest.

Maximum Balance Limits: Depending on the provider, there may be different levels of deposits allowed. At Shawbrook, the maximum account balance for a fixed rate bond is £2,000,000 and the fixed rate cash ISA maximum account balance is £250,000.

Joint Account Availability: Fixed rate bonds can be opened either individually or jointly, making them suitable for those who want to save together. Fixed rate cash ISAs, on the other hand, must be opened in a single name due to their tax-free status being tied to the individual taxpayer.

Yes, you can have both a fixed rate bond and an ISA at the same time. They are separate types of savings accounts, so one does not affect your ability to open the other.

Some people may choose to use both for different purposes:

• A fixed rate bond allows you to save money outside of your ISA allowance and may offer a higher interest rate depending on the term. 
• A cash ISA lets you earn interest tax-free. The annual ISA allowance is £20,000 per tax year, and you can also transfer in funds from other eligible ISAs, such as cash ISAs or stocks & shares ISAs, depending on the provider’s rules.

A fixed rate bond is neither better or worse than a fixed rate cash ISA; it depends on your savings goals and tax position.

A fixed rate cash ISA is designed for savers who want to make the most of their tax-free allowance. The interest you earn is tax-free, which can be valuable if you have already used your Personal Savings Allowance. You can contribute up to £20,000 to a cash ISA each tax year, and also transfer in funds from other ISAs.

A fixed rate bond may appeal to those who have already reached their ISA limit or want to save a larger amount in one place. Fixed rate bonds provide a guaranteed return for a set term, but access to the money is usually locked until the end of the term.

Rather than choosing one over the other, some people use both as part of a wider savings plan. 

The right choice depends on your circumstances, goals, and how you want to access your money. Consider your options before deciding on a fixed rate bond, a cash ISA, or both.

A fixed rate bond is a savings account that gives you a guaranteed interest rate for a set period. Here’s how it typically works:

• Depositing Money: Some bonds have a cutoff date for deposits, after which you may need to open a new bond to add more money.
• Accessing Your Funds: Your money is usually locked in until the bond reaches its maturity date. Early withdrawals are often not allowed, so it’s important to plan your savings around the term.
• Interest Payments: Interest is fixed for the full term and may be paid monthly or annually, depending on the product. The fixed interest ensures you know exactly how much you will earn. 
• Tax Considerations: Interest earned on a fixed rate bond may be subject to income tax, depending on your personal circumstances and any allowances you have, such as the Personal Savings Allowance.

Fixed rate bonds are ideal for savers who want certainty and protection from interest rate fluctuations, providing a predictable way to grow your savings over a fixed period.

A fixed rate bond offers a fixed interest rate and protection against market fluctuations, helping you predict your savings growth. However, access to funds is restricted until the end of the agreed term, which may not suit savers who need flexibility or quick access to their money.

Yes, you can add money to a fixed rate bond, but there are some rules to be aware of.

• Depositing Money: Fixed rate bonds allow you to make deposits while the product is open for funding. This usually means you can add a lump sum when the account is opened and within a set period of time after. You will continue to earn interest on your existing deposits, but you will not be able to add any more money once the bond is closed for new deposits.
• Deposit Limits: Each bond has a maximum amount you can save. At Shawbrook, the maximum balance for a fixed rate bond is £2,000,000. After the initial funding window, you generally cannot add more money.  
• One-Off or Regular Deposits: Some fixed rate bonds only accept a single lump sum at the start, while others may allow additional deposits. Check the specific bond terms to see what is allowed.
• Planning Your Deposits: Since the money is locked in until maturity, it’s important to decide how much you want to deposit upfront. Once the bond matures, you can open a new account or reinvest your savings.

In short, adding money to a fixed rate bond depends on the product’s deposit rules. Most savers deposit a lump sum at the start, but some bonds allow additional deposits within a set period of time.    

Yes, at eligible UK banks and building societies, savings held in fixed rate bonds are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per person, per institution. Joint accounts are also protected, giving total coverage of up to £240,000 for two account holders.

At Shawbrook, fixed rate bonds are eligible for FSCS protection, giving you peace of mind that your savings are safeguarded.

There is generally no limit to the number of fixed rate bond accounts you can hold, either with the same provider or across different banks and building societies. Some savers choose to open multiple bonds to manage their savings, take advantage of different interest rates, or stagger maturity dates.

At Shawbrook, you can open more than one fixed rate bond account. This allows you to spread your savings across different terms while benefiting from the guaranteed interest rates offered on each bond.

When a fixed rate bond reaches the end of its term, you can access your savings. To get the best return on your money, it’s important to check your options and decide how you want to manage your savings. In general, you can either withdraw your funds or reinvest them in a new savings account.

For Shawbrook customers, you can find detailed guidance on the next steps on our Closing or Maturing Your Account page.

No, you generally cannot withdraw money from a fixed rate bond before the end of the term. This restriction allows the account to offer a guaranteed interest rate over the full term.

You can make payments to your Shawbrook Fixed Rate Bond using electronic transfers, including Faster Payments, BACS, and CHAPS.

As payments are not taken automatically, you’ll need to send any deposits from your nominated or linked account. Use the following details when making a payment:

• Payee: Your name
• Account number: Your eight-digit account number
• Sort code: 16-58-73
• Reference: Your name again

If you’re unsure which account number to use, you can find guidance on how to find your account number.

Deposits can only be made while the product is open for funding, so it’s important to check the product’s terms and conditions before making a payment. You can add money up to the maximum deposit limit of £2,000,000.

Once a Fixed Rate Bond product is closed for deposits, you cannot add more money to that bond. Existing savers continue to earn interest, and you may be able to open a new bond if you want to deposit additional funds. You  can check if a Fixed Rate Bond product is no longer open for funding by checking our savings documentation page and checking the withdrawn product list.        

If you do not have a Shawbrook account you can easily apply to open an account in minutes on our website by selecting Learn more and apply next to the account you'd like.

All our applications are subject to eligibility and verification of your identity. If we need more information from you to complete our checks and set up your account, a member of our team will be in touch within five working days from the submission of application.

If you already have a Shawbrook account you can open another one easily from your online account. Log in, compare accounts and apply in a few steps.

Yes, on selected accounts. Interest can be credited to your account with us or paid to your linked (nominated) account. When applying for your savings account we will ask you to choose:

• where to pay your interest
• when to pay it (monthly or annually)

Our Bonus Easy Access Account is a monthly interest product only. Interest is paid into your Bonus Easy Access Account, however if you would like to get this paid into your linked account, just send us a secure message or give us a call.

If you already have an account and want to change how you receive interest, please log in and send us a message or contact us by phone.

Yes. For Shawbrook Fixed Rate Bonds, the minimum balance to open an account is £1,000. The maximum balance you can hold in a fixed rate bond is £2,000,000.