Compare the best 18-month fixed-rate bonds

Discover all you need to know about 18-month fixed-rate bonds and compare accounts with interest rates up to 4.75% AER.

FSCS logo
Is my money safe?

The Financial Services Compensation Scheme (FSCS) guarantees that it will step in to compensate the first £85,000 (£170,000 for a joint account) you have saved with a UK-authorised bank, building society or credit union in the event that the business goes bust.

Table: sorted by interest rate, promoted deals first
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Name Product UKFSA-SAV Rate Invest Deposit protection Open via Incentive Apply link Return
Al Rayan Bank – Raisin UK - 18 Month Fixed Term Deposit
Al Rayan Bank – Raisin UK - 18 Month Fixed Term Deposit
4.45% AER fixed for 1.5 years
£1,000 - £85,000
FSCS logo
protected
Open via: website, mobile app
Go to site
View details
£6,404.92
at maturity
QIB (UK) – Raisin UK - 18 Month Fixed Term Deposit
QIB (UK) – Raisin UK - 18 Month Fixed Term Deposit
4.05% AER fixed for 1.5 years
£1,000 - £85,000
FSCS logo
protected
Open via: website, mobile app
Go to site
View details
£6,368.17
at maturity
Union Bank of India (UK) Ltd – Fixed Rate Deposit
Union Bank of India (UK) Ltd – Fixed Rate Deposit
4.75% AER fixed for 1.5 years
£1,000 - £1,000,000
FSCS logo
protected
Open via: branch, post
Go to site
View details
N/A
Union Bank of India (UK) Ltd – Fixed Rate Deposit
Union Bank of India (UK) Ltd – Fixed Rate Deposit
4.7% AER fixed for 1.5 years
£1,000 - £1,000,000
FSCS logo
protected
Open via: branch, post
Go to site
View details
£6,427.93
at maturity
Gatehouse Bank – 18 Month Fixed Term Woodland Saver
OFFER
Gatehouse Bank – 18 Month Fixed Term Woodland Saver
4.55% AER fixed for 1.5 years
£1,000 - £1,000,000
FSCS logo
protected
Open via: website
Green - Gatehouse Bank will plant a tree in a UK woodland when an account is opened and funded. Trees are planted in UK woodland projects certified by the UK Government’s Woodland Carbon Code.
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View details
£6,414.12
at maturity
Gatehouse Bank – 18 Month Fixed Term Woodland Saver
OFFER
Gatehouse Bank – 18 Month Fixed Term Woodland Saver
4.55% AER fixed for 1.5 years
£1,000 - £1,000,000
FSCS logo
protected
Open via: website
Green - Gatehouse Bank will plant a tree in a UK woodland when an account is opened and funded. Trees are planted in UK woodland projects certified by the UK Government’s Woodland Carbon Code.
Go to site
View details
£6,414.12
at maturity
Hampshire Trust Bank – 18 Month Online Fixed Saver (Issue 32)
4.51% AER fixed for 1.5 years
£1 - £250,000
FSCS logo
protected
Open via: website
Go to site
View details
£6,410.44
at maturity
Dudley Building Society – 18 Month Fixed Rate Bond Issue 13
Dudley BS – 18 Month Fixed Rate Bond Issue 13
4.4% AER fixed for 1.5 years
£1,000 - £1,000,000
FSCS logo
protected
Open via: branch, post
Go to site
View details
£6,400.32
at maturity
Cynergy Bank – Fixed Rate Bond
4.4% AER fixed for 1.5 years
£1,000 - £1,000,000
FSCS logo
protected
Open via: website
Go to site
View details
£6,400.32
at maturity
Bank of London and The Middle East – 18 Months Premier Deposit Account
Additional account needed
Bank of London and The Middle East – 18 Months Premier Deposit Account
4.35% AER fixed for 1.5 years
£1,000 - £1,000,000
FSCS logo
protected
Open via: website
Go to site
View details
N/A
Aldermore – 18 Month Fixed Rate Savings Account
4.3% AER fixed for 1.5 years
£1,000 - £1,000,000
FSCS logo
protected
Open via: website
Go to site
View details
£6,391.13
at maturity
Aldermore – 18 Month Fixed Rate Savings Account
4.3% AER fixed for 1.5 years
£1,000 - £1,000,000
FSCS logo
protected
Open via: website
Go to site
View details
£6,391.13
at maturity
Shawbrook Bank – 18 Month Fixed Rate Bond Issue 46
4.28% AER fixed for 1.5 years
£1,000 - £2,000,000
FSCS logo
protected
Open via: website
Go to site
View details
£6,389.29
at maturity
Shawbrook Bank – 18 Month Fixed Rate Bond Issue 46
4.28% AER fixed for 1.5 years
£1,000 - £2,000,000
FSCS logo
protected
Open via: website
Go to site
View details
£6,389.29
at maturity
Tesco Bank – Fixed Rate Saver
4.2% AER fixed for 1.5 years
£2,000 - £5,000,000
FSCS logo
protected
Open via: website, telephone
Go to site
View details
N/A
Skipton BS – 18 Month Fixed Rate Branch Bond Issue 262
4.2% AER fixed for 1.5 years
£5,000 - £1,000,000
FSCS logo
protected
Open via: branch, post, telephone
Go to site
View details
£6,381.94
at maturity
Skipton BS – 18 Month Fixed Rate Bond Issue 262
4.2% AER fixed for 1.5 years
£5,000 - £1,000,000
FSCS logo
protected
Open via: branch, website, mobile app, post, telephone
Go to site
View details
£6,381.94
at maturity
Skipton BS – 18 Month Fixed Rate Bond Issue 262
4.2% AER fixed for 1.5 years
£5,000 - £1,000,000
FSCS logo
protected
Open via: branch, website, mobile app, post, telephone
Go to site
View details
£6,381.94
at maturity
Tesco Bank – Fixed Rate Saver
4.2% AER fixed for 1.5 years
£2,000 - £5,000,000
FSCS logo
protected
Open via: website, telephone
Go to site
View details
N/A
Skipton BS – 18 Month Fixed Rate Branch Bond Issue 262
4.2% AER fixed for 1.5 years
£5,000 - £1,000,000
FSCS logo
protected
Open via: branch, post, telephone
Go to site
View details
£6,381.94
at maturity
Progressive Building Society – 18 Month Fixed Rate Bond (Issue 58)
Progressive BS – 18 Month Fixed Rate Bond (Issue 58)
4% AER fixed for 1.5 years
£500 - £1,000,000
FSCS logo
protected
Open via: branch, post
Go to site
View details
£6,363.58
at maturity
OakNorth Bank – Fixed Term Savings Account
4% AER fixed for 1.5 years
£1 - £500,000
FSCS logo
protected
Open via: website, mobile app
Go to site
View details
£6,363.58
at maturity
Allica Bank – 18-Month Fixed Term Savings Account (Issue 13)
Allica Bank – 18-Month Fixed Term Savings Account (Issue 13)
4% AER fixed for 1.5 years
£10,000 - £250,000
FSCS logo
protected
Open via: website
Go to site
View details
N/A
Monmouthshire Building Society – 18 Month Fixed Rate Bond - Issue 4
Monmouthshire BS – 18 Month Fixed Rate Bond - Issue 4
4% AER fixed for 1.5 years
£1,000 - £500,000
FSCS logo
protected
Open via: branch, website
Go to site
View details
£6,363.58
at maturity
OFFER
Tandem Bank – 18 Month Fixed Saver
3.85% AER fixed for 1.5 years
£1 - £2,500,000
FSCS logo
protected
Open via: website, mobile app
Green - By opening an account you are supporting Tandem Bank's green lending initiatives and helping to make UK homes more sustainable and environmentally friendly.
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View details
N/A
Barclays Bank – Premier Flexible Bond 18 Month - Issue 49
3.8% AER fixed for 1.5 years
£1 - £1,000,000
FSCS logo
protected
Open via: branch, website, mobile app, telephone
Go to site
View details
£6,345.23
at maturity
Barclays Bank – Premier Flexible Bond 18 Month - Issue 49
3.8% AER fixed for 1.5 years
£1 - £1,000,000
FSCS logo
protected
Open via: branch, website, mobile app, telephone
Go to site
View details
N/A
Barclays Bank – Flexible Bond 18 Month Issue 69
3.75% AER fixed for 1.5 years
£1 - £1,000,000
FSCS logo
protected
Open via: branch, website, mobile app, telephone
Go to site
View details
£6,340.64
at maturity
Barclays Bank – Flexible Bond 18 Month Issue 69
3.75% AER fixed for 1.5 years
£1 - £1,000,000
FSCS logo
protected
Open via: branch, website, mobile app, telephone
Go to site
View details
N/A
Metro Bank – Fixed Term Savings Account
2.5% AER fixed for 1.5 years
£500 - £2,000,000
FSCS logo
protected
Open via: branch, website
Go to site
View details
N/A
Metro Bank – Fixed Term Savings Account
2.5% AER fixed for 1.5 years
£500 - £2,000,000
FSCS logo
protected
Open via: branch, website
Go to site
View details
N/A
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Please note: This calculator provides estimations based on assumptions such as that you do not make withdrawals. You should always refer to the account provider for exact figures as they may vary from our results. Interest may be taxable.

Fixed-rate bonds enable you to earn a higher rate of interest in return for locking your savings away for a set time. You can find fixed-rate bonds that last as little as 6 months or others that last for as long as 5 years. Here, we look at 18-month fixed-rate bonds.

How do 18-month fixed rate bonds work?

With an 18-month fixed-rate bond, you pay in a lump sum of cash and leave that money untouched for a term of 18 months. The interest paid on your savings is fixed for the term of the bond.

You won’t usually be able to top up your funds during the term and how much you need to pay into your account initially will depend on the provider. Some bonds only require a deposit of £100, but others will ask for as much as £5,000.

Withdrawals are not usually permitted during the 18-month term, but if they are, you will typically need to pay a penalty fee. Often this is a number of days’ interest. Once the 18 months are up, your bond will mature and you can access your cash or move it to another account.

Bonds with a 18-month term will generally pay a better rate than 1-year (or shorter) terms but a worse rate than 2-year (or longer) terms.

However, at the moment, you can actually get a better rate (5% vs 4.75%) on a 6-month term. If you suspect that interest rates are likely to start to come down, then you may still prefer to "lock in" for 18 months, even if it's at a lower rate.

How to compare fixed-rate bonds

When comparing fixed-rate bonds, it’s worth keeping the following points in mind:

  • What interest rate will I earn? When looking for an 18-month fixed-rate bond, you’ll want to hunt out the most competitive interest rate. Remember, this rate will be fixed for the term of the bond. Although you’d usually expect an 18-month bond to have a better rate than a 12-month bond, and a worse rate than a 24-month bond, it’s not a given. Realistically, 18 months is a bit of an “in between” term, and there’s not as much competition between banks – some of which won’t offer this term length as an option.
  • What deposit is required? The initial deposit requirement will vary depending on the provider, so make sure you check to ensure you’ll be able to meet this requirement. It’s typically at least £500.
  • Can I top up funds? Most fixed-rate bonds won’t accept further deposits once you’ve paid in your initial lump sum. However, some will let you pay in additional funds until the bond is removed from sale.
  • Can I access funds early? You usually won’t be able to make withdrawals during the term of the bond, but if you can, there will typically be a hefty penalty fee to pay.

Are fixed-rate bonds a good investment?

Fixed-rate bonds enable you to earn a higher rate of interest compared to most other savings accounts. You can also be rest assured that the interest rate won’t change during the term of the bond.

However, fixed-rate bonds will only be suitable for those with a lump sum to invest and those who can leave their funds untouched for a set time. An 18-month fixed-rate bond could be a good option for those who want the security of a fixed-rate bond but who don’t want to lock away their funds for too long.

It can also be a particularly good choice while interest rates are rising. Choosing a bond that lasts longer, say 3 to 5 years, could result in you being locked into an account that is no longer competitive if rates rise further.

Which are the best 18-month fixed-rate bonds at the moment?

Our best fixed-rate bonds are the highest interest rates available. To get the latest rates, we use Moneyfacts data, which covers nearly the full market of savings products and is checked and updated daily. We don’t include accounts from private banks.

All the fixed-rate bonds in our list have savings protection – for most, this is the Financial Services Compensation Scheme (FSCS). Other schemes include that of NS&I, which is 100% backed by HM Treasury, and the Gibraltar Deposit Guarantee Scheme.

  • Union Bank of India (UK) Ltd – Fixed Rate Deposit - 4.75%
  • Gatehouse Bank – 18 Month Fixed Term Woodland Saver - 4.55%
  • Hampshire Trust Bank – 18 Month Online Fixed Saver (Issue 32) - 4.51%
  • Al Rayan Bank – Raisin UK - 18 Month Fixed Term Deposit - 4.45%
  • Cynergy Bank – Fixed Rate Bond - 4.4%

An overview of our 18-month fixed-rate bond comparison

Rates up to 4.75% AER
Number of accounts 31
Minimum investment £1
Maximum investment £5,000,000
Opening options Branch, website, mobile app, post, telephone

Pros and cons of 18-month fixed-rate bonds

Pros

  • Earn a fixed rate of interest for the term of the bond
  • Interest rates are generally more competitive compared to easy access accounts
  • Ideal if you have a lump sum to invest
  • At a time of rising rates, an 18-month term makes more sense than, say, a 5-year term

Cons

  • You won’t be able to withdraw cash during the term without penalty
  • You can’t usually top up your funds during the term
  • Interest rates will be lower compared to longer-term fixed-rate bonds

Bottom line

Choosing an 18-month fixed-rate bond can be a good option if you’d like to lock away your funds in return for a higher interest rate, but you can’t afford to leave your funds untouched for too long. However, you’ll need a lump sum to invest and remember that if you need to access your funds early, penalty fees can be high (if withdrawals are allowed at all).

Frequently asked questions

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
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Rachel Wait is a freelance journalist and has been writing about personal finance for more than a decade, covering everything from insurance to mortgages. She has written for a range of personal finance websites and national newspapers, including The Observer, The Mail on Sunday, The Sun and the Evening Standard. Rachel is a keen baker in her spare time. See full bio

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