Co-operative Bank Fixed Term Deposits

Our fixed term deposit — also known as a fixed rate bond — is a type of savings account designed for people who want to lock away a lump sum for 1, 2 or 3 years, and earn a fixed rate of interest.

Account overview

With a Co-operative Bank Fixed Term Deposit, you can:

  • Deposit as little as £1,000, and anything up to £1,000,000
  • Lock in your interest rate for the duration of your chosen term
  • Choose to receive annual or monthly interest payments
  • Withdraw your money or reinvest your funds at the end of your chosen term
  • Open it as a sole or joint account.

Please note:

  • To apply, you must be a UK resident aged 16 or over
  • You cannot withdraw from this account until it’s matured at the end of your chosen fixed term
  • You also cannot add to your fixed term deposit during your chosen fixed term
  • If you think you’d need access to your savings before the fixed term ends, this is probably not the right account for you.

Not the right account for you? Take a look at our other savings accounts.

Compare our Fixed Term Deposits

The main differences between our Fixed Term Deposits are the lengths of their terms, and the interest you could earn.

Length of term
Interest paid annually (gross/AER)
Interest paid monthly (gross)
Interest paid monthly (AER)
Length of term 1 Year Fixed Term Deposit
Interest paid annually (gross/AER) 4.53%
Interest paid monthly (gross) 4.50%
Interest paid monthly (AER) 4.59%
Length of term 2 Year Fixed Rate Deposit
Interest paid annually (gross/AER) 4.25%
Interest paid monthly (gross) 4.21%
Interest paid monthly (AER) 4.30%
Length of term 3 Year Fixed Term Deposit
Interest paid annually (gross/AER) 4.12%
Interest paid monthly (gross) 4.09%
Interest paid monthly (AER) 4.17%

The account summary information is displayed in the summary box below — you must read it before applying. You can also download this information in a PDF format.

Fixed Term Deposit terms, conditions and summary box (PDF)

Summary box

The Co-operative Bank Fixed Term Deposit

1 Year Fixed Term Deposit

4.53% gross/AER for interest paid annually

4.50% gross for interest paid monthly

4.59% AER for interest paid monthly

2 Year Fixed Term Deposit

4.25% gross/AER for interest paid annually

4.21% gross for interest paid monthly

4.30% AER for interest paid monthly

3 Year Fixed Term Deposit

4.12% gross/AER for interest paid annually

4.09% gross for interest paid monthly

4.17% AER for interest paid monthly

Interest is calculated daily. It can either be paid to you annually or monthly. Once you've chosen this you can't change your mind during the term.

Annual interest

If you choose annual interest, you'll receive it on the first business day after each anniversary. Annual interest can either be paid into this account or another account of your choice — either with us or another provider.

Monthly interest

If you choose monthly interest, you’ll receive it on the monthly anniversary of when the account is opened. If this date doesn't fall on a business day, it will be paid on the next business day. Monthly interest will be paid to another account of your choice — either with us or another provider.

No, the interest rate is fixed. It won't change until the account matures at the end of your term.

Balance at end of fixed term

£1,045.30 would be the balance after 1 year fixed term

£1,086.80 would be the balance after 2 year fixed term

£1,128.75 would be the balance after 3 year fixed term

We've worked this out assuming:

  • You’ve chosen to receive your interest annually
  • You’ve chosen to add your interest to the account.

Opening an account

To open an account you must be a UK resident aged 16 or over.

You can open an account:

  • Online
  • In branch
  • In sole or joint names
  • With a minimum opening deposit of £1,000 — to be paid within 14 days.

There is a maximum balance of £1,000,000.

You've got 14 days from when we open your account to pay in the minimum balance of £1,000. You can do this in one lump sum or through multiple payments. If after 14 days you haven't met the minimum balance, we'll close the account and return any funds to you.

You can pay your initial deposit(s) into this account by cash, cheque or transfer from another account held with us or another provider.

No further deposits are allowed after the 14 days from account opening, but you can have more than one fixed term deposit.

How do I manage this account and get in contact?

You can contact us, and manage the account:

  • Online
  • Over the phone
  • In branch
  • By post.

No. You can't make withdrawals from this account until maturity. You should consider whether the amount you want to deposit leaves you with adequate emergency funds.

At the end of the fixed term, your account matures and your money will be put into a Smart Saver account. We'll send you a letter before your maturity to remind you of your maturity date and to let you know what options are available to you — such as re-investing or withdrawing.

On maturity, you can access your money in branch, over the phone, by post, through online banking and through our mobile app.

This is a limited issue product and may be withdrawn without notice at any time.

If you are or have previously been made bankrupt, you can still apply.

Interest earned from this account will count towards your Personal Savings Allowance. You may need to pay tax to HM Revenue & Customs if the total interest you earn is greater than your Personal Savings Allowance. Visit the Government’s website for more information on this.

Apply for a Co-operative Bank Fixed Term Deposit

If you’re eligible, you can apply either online, or in branch.

To apply, you must:

  • Be a UK resident aged 16 or over
  • Have at least £1,000 for an initial deposit.

Approval is based on an assessment of your personal circumstances. To help protect you and ourselves against fraud, we’ll share the personal information from your application with fraud prevention agencies.

Before you apply:

  • Remind yourself of the interest rate of your chosen fixed term deposit — the rates differ depending on the length of the fixed term, and whether you’re choosing to receive your interest monthly or annually
  • Please make sure you’ve read the summary box information, and read and saved copies of the important documents below.

Apply online

It will take around 10 minutes to complete this application.

To continue, confirm that you:

Please tick to confirm you've read all of the summary box information, and are eligible

You'll now be taken to the application form. Please note that both parties can withdraw funds and make transactions on this account.

Apply now

Apply in branch

If you’d prefer to speak to someone in person, you also have the option to apply in one of our branches.

Find your nearest branch

Important documents

Please read the important documents below and save copies of them for future reference.

Other ways you can save with us

If the Co-operative Bank Fixed Term Deposit account isn’t right for you, there are plenty of other ways to save with us.

Compare all of our savings accounts

Select Access Saver 2

Up to 4.09% gross / AER variable

A limited access account for those who want a higher interest rate if they don't withdraw, but have easy access to their money when they need it.

Co-operative Bank Fixed Rate Cash ISA

Up to 4.62% tax-free / AER fixed

A fixed rate cash ISA for those with a lump sum to save or transfer, who don't need immediate access to their savings.

Co-operative Bank Maturity Fixed Term Deposit

Up to 4.56% gross / AER fixed (annually)

Monthly interest option available.

Available exclusively for Co-operative Bank customers whose Fixed Term Deposits are about to mature.

Savings terms, explained

AER stands for Annual Equivalent Rate and shows what the interest rate would be if interest were paid and added to your account each year.

Fixed interest means the rate stays the same until the account matures.

Gross is the rate of interest payable before any tax is taken off.

Tax-free means you will not pay any tax on your interest.

Tax year runs from 6 April to 5 April.

Variable interest means that it could go up or down.

Business day is usually Monday to Friday excluding bank holidays.

Any reference to tax is based on our understanding of current tax regulations which may change in the future and depend on the customer's individual financial circumstances.

The Co-operative Bank reserves the right to decline to accept any application and/or deposit.

Financial Services Compensation Scheme

Your eligible deposits held by a UK establishment of The Co-operative Bank plc are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. This limit is applied to the total of any deposits you have with The Co-operative Bank and smile. Any total deposits you hold above the limit between these brands are unlikely to be covered.

Please read further information on the FSCS scheme here or visit their website.

Not found what you're looking for?

Contact our support team