In this brief guide, we are going to discuss the Halifax fixed-rate bonds.

Halifax fixed rate bonds

The Halifax fixed rate bond could refer to the Halifax fixed saver which is a 2 year term savings account. For the rest of this guide, we will refer to the Halifax fixed saver as the Halifax fixed rate bond.

The Halifax fixed rate bond may be suitable for:

Uk residents who are over 16 years of age

Savers who want fixed interest rates and are happy to have their money locked away for 2 years

Savers who won’t need quick access to their funds

Benefits of the Halifax fixed rate bonds

Some of the benefits of the Halifax fixed rate bonds are:

You will have an account which qualifies you for the Halifax savers prize drawn

You can earn 0.55% gross/AER fixed rate for the two-year term

You can decide between having your interest paid every month or every 12 months but this may affect the rate you get. You will also only be able to do this once you have opened the Halifax fixed rate bond account.

What is the Halifax savers prize draw?

The Halifax Savers Prize Draw, draws 3 top prizes of £100,000.

This means you can have a chance of winning one of the 3 £100,000 prizes if you register and hold at least £5,000 in your Halifax fixed rate bond account during the whole calendar month before each draw.

Every month over 1,600 savers in the draw are randomly selected to win money and there are £550,000 of prizes to be won in the free draw every month.

Every month 3 savers will win £100,000, 100 will win £1,000 and 1,500 will win £100.

There have been over 105,000 winners and so far Halifax has paid out over £57 million in prizes so far to their customers.

How does the Halifax fixed rate bond work?

With the Halifax fixed rate bond we can open an account with a minimum of £500. You must make your initial minimum deposit within 10 days of opening the account but you can make as many deposits doing that initial 10 day period.

At the end of the 24 month fixed period the account will switch over to an instant saver accounts.

You can check to see what your interest rates may look like.

FAQs about the Halifax fixed rate bond

Below are some of the most asked questions about the Halifax fixed rate bonds.

What is the interest rate?

The interest rate on the Halifax fixed rate bond is 0.55% gross/AER on balances of £1 or more for 24 months from when the account is opened.

As mentioned above, you can choose to have the interest on your account paid monthly or paid at the end of every 12 months and the method of interest repayment you choose could affect the rate you receive. You can also only make this decision once you have opened the account.

Can you open a joint Halifax fixed rate bond account?

Yes, you can open a joint account with your Halifax fixed rate bond account but you can only do this by making an application in branch or over the phone once your account has been opened but not online.

Can the interest rate change?

No the interest rate on the Halifax fixed-rate bonds are fixed and cannot change during the term of the account.

Can I withdraw money from this account?

You can’t withdraw any money from this account but if you need your money urgently you will be able to close the account early. If you close your account early you will be charged the equivalent of 180 days’ gross interest. This may mean you get back less than you put in.

Is your money protected by the Financial services compensation scheme?

Yes, the money in your account is protected by the financial services compensation scheme by up to £85,000 per person per account. For joint accounts the combined cover will be £170,000.

How to apply for the Halifax fixed rate bond?

To apply for the Halifax fixed rate bond account you can call Halifax on 0345 726 3646.

The Lines are open from Mon-Fri 7am-10pm, Sat and Sun 8am-6pm.

You can also apply by going in branch to book an appointment.

Finally, you can apply online.

You will need to deposit your funds within 10 days and they must be a minimum of £500. You won’t be able to make any deposits into the account after 10 days have passed.

The account term starts on the day you open the account.

The maximum amount that can be held in the account is £9 million.

What is gross rate?

This the rate you will get when taking into account that no tax deductions have been made yet. If you get a gross rate you will be responsible to pay tax to HMRC.

What is AER?

AER stands for Annual Equivalent Rate. The AER allows you to compare all savings accounts. The AER  shows what the interest rate would be if your interest was paid and compounded once each year.

In this brief guide, we discussed the Halifax fixed rate bonds. If you have any questions or comments please let us know.

John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.