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This is our brief introductory guide to 1 Year Fixed Rate Bonds.
In brief:
- One-year bonds offer investment opportunities, with interest rates that are typically substantially higher than those of a standard savings account.
- Most fixed rate bonds, including one-year bonds prohibit access to the funds invested until the term has ended.
- Interest rates and associated risk levels vary from one investment bond to the next.
Provider | % | Minimum Deposit | Payout Frequency |
 | 5 | £5,000 | Monthly, quarterly, annually, or at maturity |
 | 0.7 | £1,000 | None |
 | 0.4 | £1,000 | None |
 | N/A | £10,000 | None |
 | 0.15 | £500 | None |
 | 0.95 | £5000 | No Withdrawals |
 | 0.50 | £1.00 | No Withdrawals |
 | 0.75 | £25 to £250 a month | None, by closure only |
 | 0.15 | £2,000+ | No Withdrawals |
 | 0.60 | £100 | No Withdrawals |
 | 0.01 | £1.00 | Instant |
 | 0.15 | £500 | No Withdrawals |
 | 0.40 | £1.00 | No Withdrawals |
 | 0.25 | £5,000 | Daily Limits |
 | 0.01 | £500 | Yes: no notice and no penalty |
 | 0.35 | £500 | No Withdrawals |
 | 0.50 | £1.00 | No Withdrawals |
 | 0.10 | £500 | Withdrawals or account closures permitted |
 | 0.45 | £500 | No Withdrawals |
 | 0.60 | £2,000 | No Withdrawals |
 | 0.35 | £1.00 | No Withdrawals |
 | 0.37 | £1,000 | No Withdrawals |
(Data presented is correct as at 08/09/21)
Why Buy One-Year Fixed Rate Bonds?
A one-year fixed bond typically offers the incentive of a higher rate of interest than a standard savings account, in exchange for foregoing access to your capital for a period of 12 months.
You cannot withdraw any of your money for the duration of the property bond, which is repaid to the investor in full when the bond matures. It may be possible to access some, or all the funds invested in an emergency but doing so could result in penalty payments and interest losses.
Who Are One Year Bonds Suitable For?
A one-year fixed bond is suitable for investors in a strong enough financial position to comfortably relinquish access to their capital for the agreed period. It is a strictly short-term investment opportunity (12 months or less) during which interest is earned on the value of the bond at an agreed rate.
Short-term bonds are typically available with a relatively low minimum investment amount, making them suitable for qualifying established and new investors.
Are There Any Risks Involved with One-Year Bonds?
All investment opportunities carry a certain level of risk, including one-year bonds. Reducing risk means performing the necessary due diligence and conducting extensive background checks on the entity issuing the bond.
Should I Consider a Longer Fixed Rate Bond?
If you can comfortably give up access to your investment capital for a longer period of time, it may be worth considering a two-year bond or longer.
Though not always the case, longer-term fixed rate bonds could open the door to higher rates of interest and more generous returns.
