Save a lump sum for a fixed amount of time
If you're thinking of opening a savings account to deposit a lump sum, and you don't need quick access to your money, a fixed rate savings account may give you a better interest rate than an easy access savings account.
What is a fixed rate bond?
A fixed rate bond is a type of savings account where you lock your money away for a set period of time. During this time, you can't take the money out, but in return, you get a fixed interest rate. This means you know exactly how much interest you will earn over the term of your account. Fixed rate bonds are great if you have a lump sum you don't need to use right away and want to earn a fixed return.
How do fixed rate bonds work?
Fixed rate bonds have some key features you should know about.
| Fixed Term Period | When you open a fixed rate bond, your money is locked in for a set period. This means you can't take it out until the end of the term. |
| Fixed Interest Rate | You will get a fixed interest rate, which means you know exactly how much interest you will earn over the term of your account. |
| Maturity | At the end of the term, your bond reaches maturity. This is when you can access your money. We'll contact you prior to this date about your maturity options. |
| Cooling-Off Period | Our products include a short cooling-off period after you open the account. During this time, you can change your mind and get your money back without any penalties. |
| Early Withdrawal | Usually, you can't take your money out before the bond matures. We will contact you before the end of the fixed term to let you know your maturity options. |
Is a fixed rate bond for me?
Once you open the account and deposit your lump sum, your money is locked in for a set period. During this time, you can't take out the money, but you don't need to do anything else. Just sit back and watch your savings grow at a fixed interest rate. If you do need to manage your account before the end of the fixed term, you can do this online or through our friendly customer service team. If you opened your account in branch, you can also book an appointment to speak to our branch customer advisers.
Fixed rate bonds are most suitable for people who don't need quick access to their money. If you have a lump sum that you can set aside for a while, a fixed rate bond could be a good choice. It's also great if you want to know exactly how much interest you'll earn, as the rate is fixed and won't change during the fixed term.
How to apply
To open your fixed rate bond, you can apply online or in one of our our branches. To apply online, click 'view full product details' of the fixed rate bond you want to apply for. If you're an existing customer, log in to apply. For new customers, click 'apply for a new account' and follow the straightforward steps. To apply in a branch, arrange an appointment.
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Showing all of our products
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Open with £1 and invest up to £1 million
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Fixed rate until 18th January 2028
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No withdrawals until 18th January 2028
Apply online or in branch
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Open with £1 and invest up to £1 million
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Fixed rate until 27th July 2027
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No withdrawals until 27th July 2027
Apply online or in branch
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Open with £1 and invest up to £1 million
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Fixed rate until 14th July 2028
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No withdrawals until 14th July 2028
Apply online or in branch
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Open with £1 and invest up to £1 million
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Fixed rate until 16th July 2031
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No withdrawals until 16th July 2031
Apply in branch
Gross interest is the contractual rate of interest, without the deduction of tax. AER stands for Annual Equivalent Rate and shows what the interest rate would be if interest were paid and added to your account each year. It is your responsibility to pay any tax due, based on your individual circumstances.
Deposits protected up to £120,000
Your eligible deposits with Newcastle Building Society are protected up to a total of £120,000 by the Financial Services Compensation Scheme, the UK’s deposit protection scheme. This limit is applied to the total of any deposits you have with Newcastle Building Society and Manchester Building Society (as a trading name of Newcastle Building Society). Any deposits you hold above the £120,000 limit are unlikely to be covered.
Learn more about FSCS
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