The table below will allow you to compare some of the best fixed term bonds from UK banks and building societies.

PROVIDER	INTEREST RATE AER	FIXEDTERM DETAILS	INTEREST PAYMENT	MINIMUM INVESTMENT	FURTHER INFORMATION
YORKSHIRE BANK	4.70%	5 YEAR FIXED TERM BOND	ANNUALLY	£2,000
AA	4.60%	5 YEAR FIXED RATE BOND	YEARLY	£10,000
HALIFAX	4.11%	3 YEAR FIXED RATE BOND	ANNUALLY	£500
YORKSHIRE BANK	4.01%	2 YEAR FIXED RATE BOND	MONTHLY	£2,000
CHESHIRE BUILDING SOCIETY	3.55%	1 YEAR FIXED RATE BOND	ANNUALLY	£100
ALDERMORE BANK	3.46%	1 YEAR FIXED RATE BOND	ANNUALLY	£1,000
FIRSTSAVE	3.01%	6 MONTH FIXED TERM SAVINGS BOND	ON MATURITY	£1,000

WHAT ARE FIXED RATE BONDS

"Fixed rate bonds" or as they are also called "Fixed Term Bonds", are a form of savings account offering a fixed rate of interest to savers who commit their funds for a fixed term. The bonds can be fixed for a variety of terms and many banks and building societies offer a selection ranging from 6 month to 5 years with 12 months/1 year being the most popular fixed rate savings bond.The interest on  fixed rate savings bonds may be paid either monthly or annually depending on what the bank or building society are offering and what you choose. Fixed rate savings bonds paying annually will normally pay a higher interest rate than those that pay monthly. Even though UK interest rates are crashing in 2009 there are still fixed rate bonds offering an above average rate of return. Above are the some of the  fixed rate bonds that are currently offering the best interest rates. Some of the best fixed rate bonds on offer comes from Nationwide, requires a minimum investment of £1 and are covered by the FSCS.

FIXED RATE BONDS TERMS AND CONDITIONS

With a Fixed Rate Bond always check the terms and conditions as the extra interest you get over an instant access account is because you are agreeing not too close the fixed rate bond for the term you choose. Some fixed rate bonds will allow access to your funds in the form of a loss of interest (this loss could be as much as 365 days worth of interest on a 5 year fixed rate bond) while others allow no early access. If you think you might need the money before the end of the term you should consider another type of savings account and not a fixed rate bond.