Fixed Rate Bonds

Interest earned in a Fixed Rate Bond is taxable. However, whether you pay tax (and how much) depends on the amount of interest earned on funds held across all non-ISA accounts during the tax year. Basic rate taxpayers can earn up to £1,000 in interest before they would be required to pay any interest. For higher rate taxpayers, the limit is £500. More information about the personal savings allowance can be found on the GOV.UK website (External).

Yes, you can open and save into both a Fixed Rate Bond and an ISA. The interest earned in a bond forms part of your personal savings allowance, whereas ISAs come with their own separate allowance. Take a look at our ISA allowance guide for more information.

Yes, you can usually open a Fixed Rate Bond as a joint account with a maximum of two names. With a joint account, the interest is split between the two account holders. More information about the personal savings allowance and joint savings accounts can be found on the GOV.UK website (External).

If you’re planning to open a joint Fixed Rate Bond, be sure to check the terms and conditions to ensure that the account selected is eligible to be opened jointly.

There’s no limit to how many bonds you can have. Whilst you cannot add funds to a Fixed Rate Bond after it’s been opened, you can open a new one if you have another lump sum to save.

We’ll contact you with your maturity notice at least 14 days before the maturity of your Fixed Rate Bond to explain the options available to you.