SavingsEveryone's better off when savings are made simple
Learn about Fixed Term accounts
Simply put, a fixed term savings account offers a fixed rate of interest for a specified period of time. They can be fixed for a number of years, typically ranging from one to five, and will mature at the end of the fixed term. Virgin Money offer fixed term savings in the form of limited issue Fixed Rate Bonds.
How do Fixed Term accounts work?
We have a range of fixed term accounts on offer for you to choose from, our Fixed Rate Bonds are quite simple – the fixed rate of interest is paid on the sum of money in the account for the length of the Fixed Rate Bond period. The interest is then either paid into the Bond or into a separate account, it may be paid monthly or annually, depending on the financial institution and your preference. You will receive an annual statement which tells you how much interest you have earned until your Bond has matured.
With other Fixed Rate Bonds, once the fixed rate period comes to an end, your Bond will have matured. At this point you will be able to access your funds free of charge and benefit from the interest your savings have earned. You may be able to access your funds prior to maturity but this will be subject to a charge as dictated by the financial institution.
How much can you earn?
The interest you will earn on your Fixed Rate Bond is dependant on a number of factors:
- The amount of money you deposit
- The fixed interest rate of the Bond
- The length of the fixed rate period
These factors should all be carefully considered when choosing which fixed rate Bond is right for you.
Why choose a Fixed Rate Bond?
You’ll know exactly how much you’ll earn
As soon as you open your Bond you will know exactly how much you'll earn during the fixed-rate period. With your money locked away for a period of time, you can rest assured that your rate will remain the same during the fixed period, even if interest rates change.
Perfect for planning ahead
With a Fixed Rate Bond you can accurately forecast what your earnings will be once your Bond matures, allowing you to plan ahead for your financial commitments. So whether you’re saving for your children’s future, a wedding, or maybe even a dream holiday, you’ll have peace of mind that your earnings are secure.
A Fixed Rate Bond could be ideal if:
- You are looking for a longer-term home for your savings
- You are comfortable with tying your money away for a fixed period
- You want to be able to accurately forecast your earnings for the future
- You have a lump sum you want to invest without taking any risks with investments
Fixed Rate Bonds are usually offered over one to five years. Typically, as the term of the Bond increases, so does the interest rate. You can choose whichever length of time suits you best - you may be happy to tie your money up for five years to benefit from a highest rate, or you may prefer to choose a one-year option so you can access your money sooner.
It’s so easy to apply
Applying and managing your Fixed Rate Bond couldn’t be easier. If you would like to fully operate your account online from the comfort of your own home, our E-Bond could be the perfect option for you. We also have a range of other Fixed Rate Bonds which you can manage by post or in a Store. You can even apply for a Store or postal operated Bond online if that’s easier, just whatever suits you.
Interested in a Bond?
You can view all our Fixed Term savings accounts or we can help you to find a savings account from our entire range if you’re still not sure what type of account you want. Alternatively, if you would like to chat to us in person, please pop into your local Store or call 0845 600 4466* and we’ll be more than happy to help.Find a Fixed Term account