Account Name Interest rate
gross/tax-free p.a./AER*
Type of account Withdrawals Notice period
Fixed Rate ISA Issue 47
Fixed** until 30th November 2022
1.35%
  • ISA
  • Fixed rate
  • Fixed term
  • Limited access
Limited No withdrawals but transfers out to other ISA providers subject to 180 days' loss of interest More details
Fixed Rate ISA Issue 46
Fixed** until 30th November 2021
1.25%
  • ISA
  • Fixed rate
  • Fixed term
  • Limited access
Limited No withdrawals but transfers out to other ISA providers subject to 180 days' loss of interest More details

What is a fixed rate bond?

A fixed rate (or fixed term) bond is a type of savings account which has a fixed rate of interest. This kind of account requires putting money away for a set amount of time and during this period the interest which accrues is fixed, regardless of the fluctuating interest rates elsewhere.

How do fixed rate bonds work?

With a fixed term bond you need a minimum deposit to open an account. The minimum deposit will vary for each account. You can continue paying into your savings account after the initial deposit whilst the account remains on sale. After this you cannot add to your savings or withdraw until after the fixed term ends.

How long should I fix my savings for?

Committing to a longer fixed rate bond could earn you a higher rate of interest however bear in mind that you won't have access to your money until after the fixed end date.

Benefits of a fixed rate account

The benefit of a fixed rate bond is the fixed rate of interest. The interest rate won't change during the fixed term period. If interest rates lower in the UK, the rate your money is earning won’t be affected, as its fixed in advance, so you’ll be able to clearly project your return on investment. When you open a fixed rate account with Nottingham Building Society, £85,000 of your savings is protected by the Financial Services Compensation Scheme.


Things to consider with fixed rate bonds

While a fixed rate of interest can work in your favour, it’s also worth considering that you could remain tied to a lower rate of interest, if interest rates go up in the UK.

Please bear in mind that if you open a fixed rate account, you won’t have access to your money until after the fixed end date.


Fixed rate FAQs

Do you pay tax on a fixed rate bond?

We will pay your interest without tax taken off. It is your responsibility to declare any interest you earn over your personal savings allowance directly to HMRC. Your tax treatment will depend on your individual circumstances and may be subject to change in the future, for further information please contact HMRC.

Can you withdraw money from a fixed rate account early?

With the majority of our fixed rate bonds you can’t make a withdrawal until the account matures at the end of the fixed period. The exception to this is our fixed rate ISA where you’re able to transfer the balance of your account to another ISA provider. However this is subject to a penalty of 180 days loss of interest.

Is there a minimum deposit for fixed rate bonds?

There is a minimum deposit required for a fixed rate account. Please refer to the product details for this information.

Can I have more than one fixed rate account?

Although you can only pay into one ISA per tax year you can open as many fixed rate bonds with us as you like.





For ISAs

*We will pay your interest free of UK income tax. Your tax treatment will depend on your individual circumstances and may be subject to change in the future. The tax treatment of ISAs may also change. AER stands for Annual Equivalent Rate. It shows what the interest rate would be if the interest was reinvested in the account each year. Interest rates are variable unless otherwise stated.

For non ISAs

*We will pay your interest without tax taken off. It is your responsibility to declare any interest you earn over your personal savings allowance directly to HMRC. Your tax treatment will depend on your individual circumstances and may be subject to change in the future, for further information please contact HMRC. AER stands for Annual Equivalent Rate. It shows what the interest rate would be if the interest was re-invested in the account each year. Interest rates are variable unless otherwise stated.

** There's no guarantee that the current difference between our fixed rates and general rates will continue. General interest rates may fall below or rise above the fixed rate.

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