# Fixed-rate vs easy-access savings accounts

> Savings & ISAs · Last updated 23 June 2026

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## Quick answer

Easy-access accounts let you withdraw anytime but pay lower rates. Fixed-rate bonds lock your money for a set term — typically one to five years — in exchange for a higher guaranteed rate. Match the account type to when you will need the cash.

Choosing between fixed and easy-access savings is one of the first decisions savers face. Easy-access accounts offer flexibility; fixed-rate bonds reward commitment with better rates. The right choice depends on whether you can genuinely leave the money untouched for the full term.

## Key facts

- Fixed-rate bonds typically offer 0.5–1.5 percentage points more than easy-access accounts
- Withdrawing early from a fixed bond usually costs 90–180 days of interest as a penalty
- Both account types are FSCS-protected up to £85,000 per person per banking licence
- Easy-access rates can fall at any time; fixed rates are guaranteed for the full term

## Easy-access savings

You can deposit and withdraw without penalty. Rates are variable and can change — sometimes with little notice — so today's top rate may not last.

Ideal for emergency funds, money you might need within a year, or savings you are still building before locking away.

## Fixed-rate bonds

You commit a lump sum for a fixed term — usually one, two, three or five years — at a guaranteed rate. No further deposits are allowed once open.

Early withdrawal is either not permitted or penalised heavily. Only use fixed bonds for money you are certain you will not need until the term ends.

## A blended approach

Many savers keep three to six months of expenses in easy access, then ladder the rest across fixed bonds of different lengths to balance rate and flexibility.

Check whether interest is paid monthly or at maturity — monthly payment suits those who want to reinvest or spend the income.

## Frequently asked questions

### Can I open multiple fixed bonds?

Yes. Opening bonds with different maturity dates — a savings ladder — spreads access and lets you benefit from rate changes as each bond matures.

### Is a fixed bond better than a Cash ISA?

Inside your £20,000 annual ISA allowance, a fixed Cash ISA offers the same rate benefit plus tax-free interest. Outside an ISA, a fixed bond suits those who have used their allowance or Personal Savings Allowance.

### What happens when a fixed bond matures?

The bank usually moves your money to a low-rate holding account unless you instruct them otherwise. Set a reminder to reinvest or transfer before maturity.

## Primary source

https://www.gov.uk/consumer-protection-rights/savings

## Related

- [Best savings rates explained](https://moneyguide.org.uk/savings/best-savings-rates-explained/)
- [Savings ladder strategy](https://moneyguide.org.uk/savings/savings-ladder-strategy/)

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.