Fixed rate savings accounts

A fixed rate savings account offers a fixed rate of interest for a set period of time. It's usually one, two or three years, but can also be as long as five years.


This means that you lock your money away for the agreed period of time and you will not be able to withdraw during the fixed term. Some providers allow withdrawals during the fixed term, however this often comes with a penalty such as a deduction of interest.

By locking your money away for a fixed term, you’re rewarded with a higher rate of interest than you would generally receive on an easy access savings account. These accounts can often be known as fixed rate bonds, fixed term savings or a fixed term deposit.

A fixed term account is considered low risk because you earn guaranteed interest for the term and your return does not depend on market performance.

The Co-operative Bank’s fixed rate accounts are low risk due to the capital and interest being guaranteed.

Accounts that are held with The Co-operative Bank are protected by the Financial Service Compensation Scheme.

Some providers allow withdrawals during the fixed term, this often comes with a penalty such as a deduction of interest.

At The Co-operative Bank, we do not permit withdrawals from our Fixed Term Deposit accounts until the account reaches maturity.

If you choose our Fixed Rate Cash ISA, withdrawals during the fixed term are subject to a charge up to the equivalent of 120 days’ interest on the amount withdrawn.

Once the account has reached the end of its term, you will receive your initial deposit plus the interest that has accrued over the term.

Before selecting one of our fixed term accounts, decide if you will need to withdraw during the term. If you think you may need to withdraw any funds then you may like to consider an instant access account. Alternatively, our limited access savings account may be more suitable.

You can find out more about other types of savings accounts we offer on our savings account page.

We have a range of savings accounts to meet your needs and depending on the type of account you choose you can apply through various channels including branch, telephone, online and by post. Compare and find out more about the accounts we offer and how to apply. You will need to meet the eligibility criteria and may need to provide identification either digitally or in person.

Will a credit check be carried out if I apply for a savings account?

You can open and pay into multiple cash ISAs per tax year. You can also keep cash ISAs from previous years open and pay into them.

Please note: while The Co-operative Bank does not allow customers to pay into multiple cash ISAs with them in the same tax year, customers are able to deposit with The Co-operative Bank as well as other providers in the same tax year.

If you wish to transfer a cash ISA from the current or previous tax year, your current provider must allow this. It’s important to read any terms and conditions before deciding to transfer or open a new cash ISA.

There is no limit on the number of savings accounts a person can hold. However, there can be limits to the deposits and the balances you can hold in them dependent on the type of savings account and their terms and conditions. Cash ISAs, for example, only permit a maximum of £20,000 deposit per tax year. Whereas other savings accounts can limit how much you deposit or how many times you withdraw.

Before opening any savings account research our best savings account for you based on your personal circumstances and choose the products that will benefit your goals. Use our filters to help you compare our range of savings accounts to find our best savings account for you and your needs.

Interest is the amount a bank will agree to pay depositors (usually expressed as a percentage rate) in return for deposits placed with them.

There are two types of calculated interest; compound and simple.

Please note: the savings interest calculator is based on a simple interest calculation.

Compound – is the interest you earn from your original deposit combined with the interest you’ve earned so far. It means you can keep earning interest on previous years’ interest.

For example, if you deposit £1,000 into a savings account that offers a fixed interest rate of 5% and pays interest annually, you will earn £50 in interest in the first year, giving you £1,050.

In the second year, if you do not make any withdrawals (including interest) or deposits, you will earn 5% interest on £1,050, which means you will earn £52.50 interest and your balance at the end of year two will be £1,102.50.

You will have earned interest on your original deposit and also the interest you earned in year one.

Learn more about compound interest and how it works

Simple – interest is calculated on the original deposit sum only. If you deposit £1,000 into an account that pays 5%, you will earn £50 in interest every year. At the end of year two you would have £100.

Co-operative Bank savings accounts calculate interest on the balance at the end of each day, and some accounts allow interest to be paid in different ways. When interest is paid into the savings account, and it is kept in the account, it will form part of the balance, so any future interest would be calculated on a compound basis. Where interest is paid to another account, or it’s chosen to be withdrawn, it wouldn’t be included in the account balance, so would not be compounded.

Your savings account can also have an applicable variable, fixed or tracker interest rate.

Variable – with a variable rate it means that the rate paid could go up or down at the choice of the bank at any time – for example, the bank may decide to change the rate to respond to changes in market interest rates or changes in other costs faced by the bank.

Tracker – the rate paid to you could go up or down automatically following a change to the reference rate being tracked – for example, a savings product that pays a rate linked to the Bank of England base rate would usually automatically change following a change in the base rate.

Read about our Base Rate Tracker savings account

Fixed – means the interest rate stays the same throughout the term of the product. They are generally short term deposits ranging anywhere from a month to a few years.