5 year fixed rate bond FAQs

• Should I fix my savings in a 5 year bond?

  Usually, you won’t be able to withdraw your cash until the term ends. So, consider what you’re saving for and whether you can afford to lock the money up for five years.

  If you’ll need the money sooner than five years, you might consider a shorter fixed term. Remember to also keep some money available for emergencies in easy access savings.

• How many 5 year fixed rate bonds can I have?

  There’s no limit to how many fixed rate savings bonds you can open in an Active Savings Account. You can mix and match fixed rate products depending on what’s right for you, along with easy access savings products.

  Fixed rate products typically give higher rates than variable rates in instant or easy access products, but your money is locked in, so you usually won’t be able to withdraw it until the fixed term ends.

  You can get set up in minutes online with Active Savings with a single application form. Make sure you’ve read all the important information.

• Can I add more money into a 5 year fixed rate bond?

  With Active Savings, you can only add money to a 5 year fixed rate bond when you first add the product to your account.

  Your cash will then be locked away for a 5 year period - so it’s worth having a think about your savings strategy and signing up for alerts to find out when new and market-leading rates become available.

  With Active Savings you have the flexibility to add as many savings products to your account as you like, so keeping up to date with the latest rates will help make sure you’re always making the most out of your cash.

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• How often do you add new savings products?

  It can be time consuming to shop around the savings market finding the best rate for your savings goals. That’s why we created Active Savings – so you can find competitive rates from a range of banks and building societies we’ve partnered with all in one account.

  To make sure we’re offering consistently competitive rates to our clients, products are added and withdrawn all the time - so it’s important to keep checking for the latest rates available. Occasionally, our banking partners offer savings products only available to existing Active Savings clients.

  Compare our latest savings rates

• Can the interest rate change on a fixed rate bond?

  No - if the rate on your savings product is fixed, then it will stay the same until the product matures.

• Can I withdraw money from a fixed rate bond?

  If you have money in a fixed term product, you will need to wait until the product matures and your savings have been returned to the cash hub before they can be withdrawn.

  You won’t be able to withdraw money from fixed term products before they reach their maturity date – except for a limited number of exceptional circumstances (e.g. terminal ill health).

  If the money is settled within the cash hub it will typically be sent to your nominated bank account via faster payments, which usually complete within one working day.

• What happens once the fixed term ends?

  When your fixed term ends, your money will move into your Active Savings Cash Hub while you decide what to do with it, unless you have chosen a default easy access product in advance. It won’t be earning any interest in the cash hub, but we’ll let you know what options are available to you near the end of your term.

  What to do with your money next depends on your needs and how long you want to tie the money up for.

  When a fixed rate bond matures, this can be a good time to reassess your rainy day fund and make sure you have enough cash you can access easily for emergencies. You can then need to decide whether to add your cash to a new easy access or fixed rate savings product. If your financial goals are five years away or more, investing could give you a better chance of growing your money over the long term if you’re happy with the risks involved.

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• How is interest paid on fixed rate bonds with HL?

  For fixed term savings, interest is typically paid annually or at maturity into the cash hub. Please see individual product summary boxes for details.

  Please note that some products calculate interest up to and including the maturity date. This means your money will earn an extra day of interest, but it will be returned to the cash hub on the working day following maturity.

  When interest payments are made into the cash hub they can then be withdrawn or saved into a new product. Once in the cash hub any interest received will need to be added to a product within 30 working days, or it may be returned to you.

• How are my savings protected?

  When you add money to a savings product, it’s held by that bank or building society. Eligible deposits are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 per banking licence. Any deposits over £85,000 with the same provider are not likely to be covered. All our banking partners are authorised by the Prudential Regulation Authority, regulated by the Financial Conduct Authority and Prudential Regulation Authority.

  Money with Active Savings which isn’t in a savings product is held in the cash hub. The cash hub is a segregated bank account, currently held with Barclays Bank plc, where your money will be safeguarded by us until you choose what to do with it. You won’t earn any interest on money held in the cash hub. As we are not a bank, your money is either protected through the FCA’s safeguarding rules if we (Hargreaves Lansdown Savings Ltd) were to fail, or the FSCS, if Barclays were to fail.

  MORE ABOUT HOW YOUR MONEY IS PROTECTED