5-Year Guaranteed Investment Bond

The 5-Year fixed rate bond is designed for individuals who have a lump sum to invest and do not require regular access to their money for at least five years. It is ideal for those who are looking for stability in their returns, as the interest rate is locked in for the duration of the term. It provides an opportunity to protect your capital while earning a guaranteed return, as the fixed-rate bonds are protected by the Financial Services Compensation Scheme (FSCS).

• Guaranteed interest rate: You lock in a fixed interest rate for the full term, so you know exactly how much you’ll earn by the end of five years, providing certainty and making financial planning easier.
• Higher returns: Fixed-Rate Bonds typically offer higher interest rates than easy access or standard savings accounts, especially for longer terms like five years.
• Protection from rate changes: If interest rates fall during your term, your return remains unaffected.
• Low maintenance: Once you deposit your lump sum, there’s no need to monitor or manage the account; your money grows with no further action required.
• Security: Your funds are protected by the Financial Services Compensation Scheme (FSCS) with no upper limit, making it a safe way to save. 

You receive annual gross interest, which is guaranteed if you invest for five years. The interest compounds over the five years, so each year the interest is added to the investment and the previous accrued interest. The total interest is equivalent to an overall return over the 5 years.