Fixed Rate Bonds

A Fixed Rate Bond is a savings account that gives you a set interest rate for a set period of time, usually between 1-5 years. In general, the longer the term, the higher the interest rate.

Our Fixed Rate Bonds are designed for customers who have a lump sum and don’t need access to their money during the term. Our bonds typically don’t allow withdrawals or early closure, however, from time to time we do offer limited access bonds which might allow you to access a certain percentage of your savings or a limited number of withdrawals during the fixed term.

This depends on what you’re saving for. It’s generally recommended that you have a range of savings which cover your needs for the short, medium and longer term. For example, for money set aside for emergencies, an easy access account could be a good option. But if you won’t need to dip into your savings and you’re planning for something a few years down the line, like a wedding or trip of a lifetime, you may prefer the certainty of a guaranteed rate for a set time frame which a Fixed Rate Bond offers.

Yes, the interest earned on our Fixed Rate Bonds is taxable. We pay all savings interest gross, which means no tax is deducted, and it’s your responsibility to pay any tax due, based on your individual circumstances.

However, you do have a Personal Savings Allowance (PSA), so won’t pay tax until you meet that limit. For more on your PSA, visit our Personal Savings Allowance page. Tax rules may change in future.

Eligible deposits in our Fixed Rate Bonds are covered by The Financial Services Compensation Scheme up to £85,000. For more information please call us on 0345 850 1722, ask in branch or visit our Financial Services Compensations Scheme page.

At Skipton we offer a wide range of savings products from easy access to fixed rate, including a wide range of Cash ISAs. If you’re looking at bonds because you’re thinking about your long-term future, you may want to consider investing as an option. It’s not like saving into a building society savings account, as your capital is at risk, but it offers the potential for greater returns over the long-term. Take a look at our Financial Advice page to get a better idea of whether it’s right for you.

Our Fixed Rate Bonds don't allow withdrawals or early closure during the fixed term. We will contact you shortly before the end of the fixed term to let you know your options at that time.