Fixed Rate Bond Calculator guide
Fixed Rate Bond Calculator: Interest and Tax
Use our fixed rate bond calculator to work out the interest on a fixed-term savings bond, and any tax due after your Personal Savings Allowance.
By the AllCalculator editorial teamUpdated 16 October 20261 min read
A fixed rate bond pays a guaranteed rate for a set term, usually 1 to 5 years. It's the UK's version of a US certificate of deposit (CD). Our Fixed Rate Bond Calculator works out what you'll earn.
How to use the calculator (Fixed Rate Bond Calculator)
- Enter the amount to deposit.
- Enter the AER and the term.
- Choose whether interest is added to the bond or paid out monthly.
- Choose your income tax band.
How it works
- Interest added: the bond grows by the AER each year, compounding.
- Paid monthly: you get the monthly equivalent of the AER as income.
The calculator compares the yearly interest with your Personal Savings Allowance to estimate any tax.
Personal Savings Allowance
| Tax band | Tax-free interest a year |
|---|---|
| Basic rate | £1,000 |
| Higher rate | £500 |
| Additional rate | £0 |
A worked example
With the calculator's default settings, £10,000 at 4.3% AER for 2 years earns £878.49. For a basic-rate taxpayer with no other savings, that's within the allowance, so there's no tax.
Frequently asked questions
Is my money safe?
Up to £120,000 per person, per bank, is protected by the FSCS.
Can I withdraw early?
Usually not, or only with a penalty. Keep an emergency fund in an easy-access account.
To earn interest tax-free, see our ISA Calculator.
Sources and further reading
Links open official and independent websites in a new tab.
This guide is general information to help you understand your options. It isn't financial, tax, legal or building advice and doesn't take your personal circumstances into account. Figures were checked when the guide was last updated and can change, so confirm anything important with GOV.UK, HMRC, a regulated adviser or a qualified tradesperson.