Fixed term bonds

If the interest rate is fixed, a fixed term bond gives you certainty about the interest rate you’ll get while your money is in the account.  

When you open a bond, you agree to leave your money in the account for a set amount of time; the fixed term. Our term lengths usually range between one to five years.

These accounts usually offer a fixed interest rate for the duration of the term. This can give you stability and potentially a higher return than other types of accounts.

Usually you can only continue adding money to your bond until we take it off sale. However some fixed term bonds may only allow you to pay in money once. And some allow you to pay in money each month; for example, a regular saver bond.

Fixed term bonds have a minimum and maximum balance allowed. The amounts will depend on which one you choose.  

You can sometimes get our best interest rate with a fixed term bond. However they do come with withdrawal and closure restrictions:

• Withdrawals aren’t allowed before the end of the agreed term.
• In most cases you cannot close your bond early. 
  
  And your eligible deposits with Principality Building Society are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. 

There is usually no limit on the number of fixed term bonds you can have. But some bonds may be restricted to one per customer. 

At the end of the fixed term, your bond will mature. At this point you have a few options.

• Move some or all of the money into another bond or savings account.
• Withdraw all your money.
• Do nothing; and we’ll transfer your balance into another account. This will be an instant access account, or the nearest equivalent.  

A fixed term bond could suit you if:

• You’re able to put a lump sum away for at least one year (doesn’t apply to regular saver bonds).
• You don't need immediate or regular access to your savings.