5 Year Fixed Rate Bond
Lock into a fixed rate of 1.40% AER payable annually after five years.
Great interest rates
Save up to £125,000
You choose how much to put away. Save any amount from £1,000
Unlimited FSCS protection
Even if you save up to the maximum of £125,000, your savings are completely covered.
A Shepherds Friendly 5 Year Fixed Rate Bond lets you save for the future safe in the knowledge that you’re getting a guaranteed return on your savings.
- To open a plan you must be at least 18 years old and live in the UK
- The investment must remain with us for the 5-year term to receive the 1.40% AER return
- As a life assurance savings plan, a lump sum is paid if you die
With our 5 Year Fixed Rate Bond, you can rest easy knowing that your money is growing, which lets you plan for your years ahead with certainty.
We’re a financial mutual that’s built on fairness. Everything we do is for our members, not shareholders, and all profits made are paid to you or re-invested for your benefit.
Our members love that we do things the right way
Nine out of 10 members would recommend us for the way we help their savings grow.
Helping our members benefit for almost 200 years
The world’s changed a lot since 1826 but our idea of fairness remains the same.
When you’re member-owned, it matters more
We take the financial future of every member personally, because you’re one of us.
What is a fixed rate savings bond?
A savings bond is a product where money is borrowed from you. In return, interest is added to your savings either annually or when the Bond matures.
With a fixed rate Bond, your money is saved for a set period. Typically, you can’t withdraw it until the term is up.
Is it easy to put money in a savings bond?
Yes, it is. You can open a 5 Year Fixed Rate Bond today with a minimum of £1,000 and we guarantee an annual return of 1.40% AER over the five-year term. With compound interest you’ll receive 7.20% interest paid on top of your initial deposit when your plan matures.
Who are fixed rate savings bonds suitable for?
They’re ideal for anyone who has a lump sum that they won’t need to access for some time.
Can I withdraw money from my Shepherds Friendly 5 Year Fixed Rate Bond?
No, you can’t withdraw money until the end of the fixed interest rate term when your Bond matures.
Are 5 Year Fixed Rate Bonds covered by the FSCS?
Yes. The Financial Services Compensation Scheme (FSCS) will cover 100% of your deposit.
- Inflation may affect the purchasing value of your investment in the future
- If you die during the term of your plan, then your estate will receive a guaranteed lump sum
- No early withdrawals from the plan are allowed, except in exceptional circumstances
- When your Bond matures, we’ll send you a Chargeable Event Certificate. Higher-rate taxpayers should include this in their tax return
- We pay tax on the fund that generates any returns on the Bond. Higher-rate taxpayers may have to pay additional tax when the Bond matures or money is withdrawn
All references to taxation are to UK taxation and are based on Shepherds Friendly Society’s understanding of current legislation and H M Revenue and Customs practice which may change in the future. Please ensure that you read the full terms and conditions of this plan which are available from your financial adviser or by contacting us directly.
Please note: No advice has been provided by Shepherds Friendly. If you are in any doubt as to whether a plan is suitable for you, we recommend getting in touch with a financial adviser, who will be happy to take you through what options are available. Should you consult a financial adviser there could be a cost involved and you should confirm this cost beforehand.