Anglo Irish fixed rate bonds provide customers with a fixed interest rate throughout the life of the account, allowing it to provide a guaranteed return that can be calculated based on the current rate and specified term of the bond.

Fixed rate bonds can be an extremely profitable saving option, as if an account is opened before an expected fall in rates, the interest rate on the account will stay the same, as it is fixed for the agreed term. This means that if the Bank of England Base rate was to fall from 5.5% to below 2% as it did in 2008/09, the rate agreed upon opening the account would not fall, even if the rates were passed on by banks.

The interest earned is calculated on a daily basis and is added to the account a year to the day of opening the account and every year thereafter until the term ends, unless the term is less that one year, or otherwise specified.

Before opening a fixed term account, you must be sure you can afford to lock your money away for the period you agree on. Early withdrawals on fixed rate bonds lasting one year or more only permit customers to withdraw any funds in an emergency and are subject to interest penalties.