Fixed Term Bonds – also known as Fixed Rate Bonds, are savings accounts that are designed for the more serious saver, allowing your to lock your cash away for a period of time ranging between 6 months and 5 years. Each term tends to come with its own unique interest rate to reflect the risks involved while still making the account attractive to savers.

Fixed term bonds also fix the interest rate paid on your balance for the chosen term. This means that with a fixed term bond, your rate won't be affected by changes to the bank rate during the term.

If rates are set to fall, or remain low, it can be very beneficial to fix the rate. This is because as the Bank of England drops its rates, banks and building societies follow suit, so you won't earn as much interest. By fixing the rate you will continue to earn a higher rate than those offered to new or variable rate customers.

However, this can also work against you, as rates could also increase during your chosen term, which would mean that you are earning at a rate that is under the odds.