Best 2 Year Fixed rate Bonds

2 year fixed rate bonds are a great way to save if you don’t immediately need access to your cash and will offer you a higher return than a regular savings account. If your savings are higher than the limit your savings account pays interest on, you may be missing out on significant potential returns. Fixed rate bonds provide a guaranteed income for the life of the bond and usually allow you to deposit far more than most current accounts. Typically, longer-term fixed rate bonds pay higher interest rates than short-term bonds.

You will know exactly how much interest you'll earn over two years as the interest rate is guaranteed, regardless of whether the Bank of England changes the base interest rate.  As long as you don't make a withdrawal until the bond matures, you'll get all your money back plus the interest you've earned. Make sure you check out the terms and conditions, if for any reason you need early access to your cash, some providers do allow withdrawals, but this can often result in a penalty.

Choosing the best 2 year fixed rate bond for your needs doesn’t have to be complicated, just make sure you carefully compare the different features various providers offer and find the one that matches your requirements. For added peace of mind, your savings are covered by the Financial Services Compensation Scheme for up to £85,000, should the bank or building society goes out of business.