Fixed Rate Bonds For Trusts

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This comparison simply includes all savings accounts.

Most Popular Highest Rate Opening Amount

Easy Access SME Saver

Interest AER 4.40%

Min deposit £5000

Term Instant Access

Easy Access SME Saver Hampshire Trust Bank

Min deposit £5000

Term Instant Access

Interest AER 4.40%

More info

Why we like it: Unlimited withdrawals. Interest paid annually. Maximum deposit £250,000. FSCS Protected. Winner of Platinum Feefo Trusted Service Award in 2024. Available for: Sole traders – trading in the UK, Limited companies/PLCs/LLPs – incorporated in the UK, Partnerships, Charities – registered in the UK, Clubs and associations, Small local authorities/PCCs/councils, Schools, Religious organisations, Small financial institutions, Credit unions, Trusts.

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Fixed rate bonds for trusts

If you are a Trustee looking for the best way to grow the capital of your Trust, then you might want to consider fixed rate bonds.

Providing you are prepared to lock up the Trust’s capital for a period of time, you can access higher rates of interest through a fixed rate bond.

Fixed rate bond features

You can take out a fixed rate bond through a bank or building society. Depending on how long you intend to leave the Trust’s capital untouched, you could select a short term or long term fixed rate bond.

The most popular fixed rate bonds run for 1 year, 2 years, 3 years or 5 years. If you are confident that you won’t need the Trust’s capital for a long time, you might want to explore long term fixed rate bonds. This is because the longer fixed rate bonds often have the best interest rates.

You will not be able to access the Trust’s capital once it is in a fixed rate bond.  Although there are some banks that allow you to withdraw the capital or close early, in the event an early withdrawal is made they will charge a penalty; this is usually a number of days’ worth of interest and can significantly reduce the initial capital.

Financial Services Compensation Scheme

Despite the fact that you cannot withdraw capital from a fixed rate bond without a penalty, Financial Services Compensation Scheme (FSCS) provides you peace of mind that your Trust’s capital is safe. The FSCS provides protection for the first £85,000 that is deposited, providing the bank has a banking authorisation.

It is important to note that some banks are part of bigger companies that have multiple banking service providers, which share the same banking authorisation. In this case your Trust’s capital will only be protected for the first £85,000 across all the banking brands within the bigger company.

If you plan on depositing capital in multiple fixed rate bonds with different banks, it is advisable to check that the banks have separate UK banking licences to ensure you benefit from FSCS protection on every bond.