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.

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.

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.

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.

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.

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.

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.

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

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