Cash & savings · Explainer
Fixed rate bonds explained: rates, access, FSCS cover and tax from 2027
A fixed rate bond pays a set rate for a set term in exchange for locking your money away. In September 2026 one-year bonds averaged 4.35% and three-year bonds 4.56%, against 3.75% Bank Rate. FSCS cover is £120,000 per person per licence, and taxable interest costs more from April 2027.
