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Two Year Fixed Rate Bond (Issue 2)

This is a limited issue savings Bond. Suitable for new and existing customers, who are able to put their money away for two years. A Fixed Rate Bond is ideal for customers who prefer a guaranteed interest rate and do not wish to access their funds before maturity.

Interest rate (AER)
£1 - £100,000
Min/Max amount
£500 - £100,000

Suitable for savers who:

  • UK residents over 18 years old
  • are prepared to put money away for two years
  • want a guaranteed interest rate
  • want to manage their account online, by phone or in our Branches

Not for savers who:

  • want instant access to their savings
  • want a flexible interest rate

Summary Box

Please read the Key Product Information below before applying

  • What is the interest rate?
    • £1 – £100,000 4.50% AER*
    • We calculate the interest daily and pay it to your account annually and on maturity.
    • You cannot have less than £500 or more than £100,000 in your account.
    • *AER stands for Annual Equivalent Rate and shows what the interest rate would be if interest was paid and compounded once each year. The gross rate is the interest rate payable before tax.
  • Can Bath Building Society change the interest rate?
    • The interest rate is fixed, so it will not change for the length of the term.
    • For more details about when we might change one of our rates, you should read your Welcome to your Bath Building Society Account brochure.
  • What would the estimated balance be after 24 months based on a £1,000 deposit?


    • This would be the balance after 24 months if £1,000 was paid in, all interest was paid back into the account, there was no change to the interest rate and no money was taken out.
    • This is just an example to help you compare accounts. It does not take into account what you may do with the money in your account.
  • How do I open and manage my account?
    • You must live in the UK to open this account. You must open it with at least £500.
    • You can deposit a maximum of £100,000.
    • You do not need to be an existing customer with Bath Building Society to open this account.
    • If you are transferring funds into this Bond from your Bath Building Society 60 Day account, we will not charge you an interest penalty on the transfer.
    • You need to complete a Bond Application Form or a Bond Maturity Instruction Form to open this account. An application form can be found at the bottom of this page and from our Customer Service Department at
    • You can only have one of these accounts.
    • You must have at least £500 in this account, and no more than £100,000. The interest on your account does not count towards this £100,000 limit.
    • You can deposit only once into your account. You cannot put any more money into your account after it is opened.
    • No passbook will be issued with this account, but customers will receive an opening certificate by email or post.
  • Can I withdraw money?
    • You are not allowed to make withdrawals. You are not allowed to close your account.
    • You can only close your account under exceptional circumstances. You will not be charged for this.
    • Exceptional circumstances include death, diagnosis of a terminal illness, bankruptcy, insolvency or sequestration. We may ask you to provide evidence of your circumstances.
    • House purchases are not considered exceptional circumstances.
    • If you ask us to send money somewhere else when closing the account, this must be agreed with us first in writing.
  • Additional information
    • We will let you know the balance held in the account in the welcome letter.
    • We will write to you again at least 14 days before the maturity of this product to discuss your next options for saving your money.
    • If we cannot offer a similar product, if you do not want a new product, or you do not tell us what you want to do with your money, the account will transfer into an Instant
    • Access account at the end of the term. You can find out more about our Instant Access account on our website.
    • This account can be withdrawn without notice.
    • We can close an account at any time if you act inappropriately, such as by using abusive language.
    • This account is protected by the Financial Services Compensation Scheme (FSCS). You should read the FSCS Information and Exclusions sheet for more information about how your money is protected.
    • This account is a savings account, not a payment account as outlined in the Payment Services Regulation 2017.
    • You should read your Welcome to your Bath Building Society Account brochure to fully understand how your account works.

Frequently Asked Questions about Fixed Rate Bonds

  • What is a Bond?

    A Bond is a type of savings account where you can invest your money for a set period of time – also known as a term. The Bonds that we offer have either 1-year or 2-year terms. At the end of the term, you get all of the interest on the amount you saved in the Bond paid gross.

  • Can I withdraw from my Bond?

    No, you are not able to withdraw from your Bond until it has matured into an Instant Access account. In the event of exceptional circumstances, we would close the account and return your money to you including interest. You can find out more by reading the Can I withdraw money? section on this product page.

  • What happens when my Bond comes to an end?

    We will contact you no later than 14 days before the end of your Bond term. When we do, we will provide information on some maturity products that you might be interested in to re-invest part or all of your money with us.

    If you don’t want to invest your money in a new Bond, it will automatically mature into an Instant Access account. Find more information about our Instant Access account.

  • How can I see how much I have in my Bond?

    You can see the balance of your Bond at any time by logging onto our Mobile App or Bath Online. We will also send you a letter in the post shortly after your Bond is opened to confirm how much you have invested in your Bond.

  • Do I have to pay tax on the interest I earn from my Bond?

    Interest will be paid gross, which means the interest is paid without considering any tax payable. If you earn interest over your Personal Savings Allowance you will be required to pay any tax due directly to HM Revenue and Customs. If you would like to read more about your Personal Savings Allowance please visit the Government website.

  • How will I get my money when my Bond matures?

    If you don’t want to invest your money in a new Bond, it will automatically mature into an Instant Access account. At that stage, you can withdraw by faster payment, cash or cheque. Find more information about our Instant Access account and go to the Saving FAQ page for more information about withdrawals.

  • How is interest calculated on my Bond?

    Interest is calculated daily and paid to the account annually and on maturity.

  • Can I add more money to my Bond after it's been opened?

    No, you are not able to make further deposits into your Bond after it’s been opened.

  • Can I have more than one of these Bonds?

    No, you are not able to have more than one of this type of Bond. However, if you meet the eligibility criteria, you can have one of each type of Bond, such as a 1-Year Fixed Rate Bond (Issue 1) and a 2-Year Fixed Rate Bond (Issue 1). You can find out more about whether you are eligible on the Bond product pages.

Important information before you apply

Before you apply please read our terms and conditions document and FSCS information sheet alongside the key product information above to understand how this account works.

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