Fixed Rate Bond Calculator — UK
Calculate your fixed-deposit maturity value and interest in GBP at current rates. No signup, no account needed.
Enter a deposit amount, a rate between 0% and 100%, and a term above zero (up to 50 years) to see results.
Fixed deposit rates in UK (2026)
Fixed-rate bonds ≈ 4–4.5% p.a. for 1–3 year terms. Check current rates on banks' and building societies' own websites.
At around 4.5%, the fixed-deposit rate in UK is around the typical range for developed-market deposits.
Reference figures, ~2026. FD interest is often taxable and rates vary by bank and tenure - verify the current rate before depositing.
Worked example
For every £15,000 deposited at 4.50% for 5 years (quarterly compounding):
- Maturity value: £18,761
- Interest earned: £3,761
Scale to your deposit amount. Longer tenures and higher rates grow the maturity value; compare banks before locking in.
How to get the best fixed-deposit return in UK
- Compare several banks - smaller and digital banks often pay more than the big high-street names.
- Ladder your deposits across different tenures so some matures regularly and you can reinvest at new rates.
- Check how often interest compounds; more frequent compounding grows the maturity value.
- Factor in tax on the interest, and compare against short-term government bills or bonds.
A real-data rate check: fixed-rate savings bonds in the UK (2026)
Many online calculators default to a flat, round number like 3% or 5% for a 12-month fixed-rate bond, without reference to what is actually on offer. In reality, UK 1-year fixed rate bond pricing moves with the Bank of England Bank Rate, which the Monetary Policy Committee held at 3.75% at its 17 September 2026 meeting. As of 15 October 2026, Kent Reliance's own product page listed its 13 Month Fixed Rate Bond at 4.83% AER (other challenger banks publish their rates on their own sites) — sitting well above base rate as smaller banks and building societies compete hard for deposit funding.
Large high-street names typically pay noticeably less than the best-buy challengers. Barclays' 1-Year Fixed-Rate Savings Bond has been quoted around 4.40% AER, while Lloyds Bank's Online Fixed Bond (1 year) has been quoted around 3.80% AER — closer to the current 3.75% base rate — reflecting the premium high-street banks can charge for brand trust and branch access rather than paying up for deposits. This spread (roughly 3.8% at a big bank up to about 4.8% at a challenger bank) is exactly why a single default rate should sit in the middle of the real market rather than at either extreme, and why savers are consistently advised to shop around rather than assume their existing bank's rate is competitive.
A more realistic example: taking a mid-market default of 4.5% AER, compounded annually (n=1) as most 12-month fixed bonds pay interest once at maturity, using A = P(1+r/n)^(nt): a £10,000 deposit for 1 year grows to £10,450.00 (A = 10,000 × (1 + 0.045/1)^(1×1)), an interest gain of £450. Held instead for a hypothetical 2-year horizon (re-fixed at the same rate) on a £15,000 deposit, the balance grows to £16,380.37, an interest gain of £1,380.37 — illustrating how compounding at a realistic, currently-available rate compares with the inflated or arbitrary defaults some calculators still use.
Frequently Asked Questions
How is FD maturity calculated in UK?
Maturity = P × (1 + r/4)^(4n) for quarterly compounding, where P is the deposit, r the annual rate and n the years. fin·calc uses this standard method.
What is the current FD rate in UK?
As a 2026 reference, fixed-deposit rates are around 4.5% per year, varying by bank and tenure. Fixed-rate bonds ≈ 4–4.5% p.a. for 1–3 year terms. Check current rates on banks' and building societies' own websites.
Is FD interest taxable in UK?
In the UK, up to £1,000 of savings interest a year is tax-free under the Personal Savings Allowance for basic-rate taxpayers (£500 for higher-rate, £0 for additional-rate taxpayers earning over £125,140); interest above that is taxed via HMRC at your marginal income-tax rate.
Is a fixed deposit safe in UK?
Fixed deposits carry no market risk. In the UK, deposits are protected by the FSCS up to £120,000 per eligible person, per authorised firm (raised from £85,000 in December 2025). They trade higher safety for lower long-term returns than equities.
Should I choose a fixed deposit or invest instead in UK?
A fixed deposit gives a guaranteed return and suits money you cannot afford to risk. Investing targets higher long-term growth but can fall in value. Many people keep an FD for safety and invest separately for growth.
What interest rate do UK banks actually pay on a 1-year fixed rate bond in 2026?
As of September 2026, rates ranged from around 3.80% AER at Lloyds Bank up to about 4.83% AER at Kent Reliance (13-month bond, per its own product page); check other challenger banks' rates on their own sites. High-street banks such as Barclays sat in between, around 4.40% AER.
Why is this calculator's default rate 4.5% and not the Bank of England base rate of 3.75%?
The Bank of England Bank Rate (3.75% as of the 17 September 2026 decision) is the rate banks pay each other overnight, not what savers earn. Competitive fixed-rate bonds, especially from smaller banks and building societies trying to attract deposits, typically pay a premium above base rate. A 4.5% default reflects a realistic mid-market rate between cautious high-street offers (around 3.8%-4.4%) and top challenger-bank rates (around 4.8%).
Do 1-year fixed rate bonds compound interest monthly or annually?
Most UK 12-month fixed rate bonds pay interest once, at maturity, which is mathematically equivalent to annual compounding (n=1) in A = P(1+r/n)^(nt). Some accounts offer monthly interest payments instead, but for a like-for-like AER comparison over exactly one year, annual compounding is the standard assumption for AER comparisons.
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Sources
Deposit rates are compiled from each country's central-bank publications and the typical offerings of its major banks, reviewed for 2026 and subject to change — always confirm the current rate with your bank before depositing. See our methodology and editorial policy for how we source and update this data.
Additional sources for this page
Kent Reliance, 13 Month Fixed Rate Bond (Issue 5): 4.83% AER annual interest, min. £1,000 (accessed 15 October 2026). Bank of England, Bank Rate 3.75% (held 17 September 2026) (accessed 15 October 2026). Bank of England (17 September 2026 decision): Interest rates and Bank Rate: our latest decision. Barclays and Lloyds published rate pages: Barclays 1-Year Fixed-Rate Savings Bond. See our methodology and editorial policy for how we source and update this data.