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Fixed term bonds

Lock your money away for a fixed period of time and you may get a better interest rate.

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Is a fixed term bond right for me?

Save for a set amount of time. If the bond also has a fixed rate, you’ll get certainty about the interest rate while your money is in the account.   

  • You may get a better interest rate

    You can sometimes find fixed term accounts offer higher interest rates in return for locking your money away. That means these accounts come with withdrawal and closure restrictions.

  • Lock your money away

    With a fixed term bond, no withdrawals are allowed before the end of the agreed term. Your money is locked away where you can’t touch it.

  • Keep your money where you can’t touch it

    In most cases, you won’t be able to close your bond early. Once you’ve deposited money it stays in the account until the end of the term. 

Understanding fixed term bonds at Principality

Frequently asked questions about 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.


Fancy something different?

If a fixed term bond isn’t for you, there are lots of other ways to save.

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    Easy access

    Save flexibly with the freedom to access your money. (Limits may apply).

    Discover easy access
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    Regular savers

    Save when you want to, and start building healthy money habits.

    Discover regular savers
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    Cash ISAs

    Save up to £20,000 each tax year without paying tax on your interest.

    Discover cash ISAs
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Want to see everything?

Browse our complete range of savings accounts and ISAs.