Fixed-Rate Savings Calculator
Our fixed deposit calculator shows the interest you will earn on a lump sum placed in a fixed-term savings account or bond over any period, at any annual rate. Fixed-term deposits typically offer higher rates than easy-access accounts in exchange for locking your money away — this calculator helps you decide whether the rate premium justifies the loss of flexibility.
Fixed Deposit / Term Deposit Calculator
Calculate exactly how much you'll earn from a fixed-rate savings account or term deposit. Compare AER rates to find the best deal.
Fixed-Term Bonds in the UK 2026
Fixed-rate savings bonds (also called fixed-term deposits) lock your money for a set period — typically 1, 2, 3, or 5 years — in exchange for a guaranteed rate. In 2026, 1-year fixed bonds from the best providers offer approximately 4.7–5.0% AER, while 2-year bonds offer around 4.5–4.8%. Longer terms (3–5 years) may offer marginally lower rates if markets expect rates to fall, or higher rates if lenders want to lock in longer-term funding.
Unlike easy-access accounts where rates can change with little notice, the fixed bond rate is guaranteed for the full term — meaning you know exactly what you will receive at maturity. A £20,000 lump sum at 4.8% for 2 years produces £1,977 in interest in year one and £2,072 in year two (on the grown balance with annual compounding) — a total of £4,049, with a final balance of £24,049.
Fixed vs Easy-Access: The Trade-Off
The rate premium for fixing is typically 0.2–0.5%. On £20,000 over 1 year, a 0.3% rate improvement adds £60 in interest — relatively small. Over 3 years at 0.4% better rate, the additional interest on £50,000 is approximately £650. Whether this justifies losing access depends entirely on your cash flow situation. Never put money in a fixed bond that you might need during the term — early access penalties (or no early access at all) can cost far more than the rate benefit.
Frequently Asked Questions
Most fixed bonds do not allow early withdrawal at all — the money is locked until maturity. Some providers allow early closure in exceptional circumstances but apply a penalty (typically 90–270 days of interest). Always read the terms before committing funds you might need.
Yes — fixed bonds at FSCS-protected institutions carry the same £85,000 per person protection as other savings accounts. If your total balance at any one institution (including any other accounts) exceeds £85,000, the excess is unprotected. Our Safe Savings Checker explains how to distribute savings safely across institutions.
At the end of the fixed term, your principal plus interest is returned to a nominated account or automatically rolled into a new fixed bond. Check the auto-rollover terms — some providers automatically roll into a lower-rate product if you take no action. Set a maturity reminder and compare rates before the bond matures.
Yes — fixed bond interest is taxable income above your Personal Savings Allowance (£1,000 for basic rate, £500 for higher rate). For multi-year bonds that pay interest only at maturity, all interest may be taxed in the year of maturity — which could push you above your PSA in one go. Interest on fixed cash ISAs is always tax-free.
This depends on your view of future interest rates. If rates are expected to fall, locking in a 2–3 year rate secures a higher return for longer. If rates are expected to rise, shorter terms allow you to reinvest at higher rates sooner. In practice, most savers split between 1-year and 2-year bonds to balance flexibility and rate certainty. See our Savings Calculator to model reinvestment at different future rates.
Enter the deposit amount, the fixed rate on offer, and the term in months or years. Fixed-rate bonds lock in a rate for a guaranteed period — typically one to five years — in exchange for restricted access during the term. The calculator shows the gross interest earned, the tax position based on your income tax band (interest from fixed bonds counts as income in the tax year the interest is paid or credited), and the net return after tax. Compare the after-tax return against current easy-access ISA rates — for higher-rate taxpayers in particular, the tax-free ISA rate can exceed the after-tax fixed bond rate even when the gross fixed rate is higher. Some fixed bonds allow a one-off penalty-free withdrawal — check terms carefully if there is any possibility you might need access.
Important Information
This calculator is provided for general information and planning purposes only. It does not constitute financial or tax advice and should not be relied upon as such. Figures are indicative estimates based on simplified, publicly available criteria and stated assumptions. Actual results depend on your full circumstances. See our Disclaimer for further information.