FD Calculator — Fixed Deposit & Fixed Bond Maturity (2026)
Calculate maturity value on any fixed deposit or fixed-rate bond — with simple or compound interest options. UK, EU, US & India rates included.
Fixed Deposits & Fixed Bonds in 2026 — What's Actually Available
Fixed deposits go by different names in different countries — Fixed Rate Bonds in the UK, Term Deposits in Australia and parts of Europe, and simply Fixed Deposits (FDs) in India. The concept is identical: lock money away for a fixed period, earn a guaranteed rate, and collect the total at maturity. The rate is set at the start and won't change regardless of what central banks do during your term — which is currently both the appeal and the trade-off.
Savings rates declined over 2025 as the Bank of England lowered the base rate from 4.75% to 3.75%. That said, 1-year fixed rates in May 2026 still sit around 4.5–5% AER — which remains competitive relative to easy-access savings and well above where rates were a few years ago.
UK Fixed Bond Rates at a Glance (June 2026)
| Term | Typical Rate Range (AER) | Interest on £10,000 (1 yr) |
|---|---|---|
| Easy Access | 4.2% – 5.0% | £420 – £500 |
| 6-month Fixed | 4.3% – 4.8% | £215 – £240 |
| 1-year Fixed | 4.5% – 5.0% | £450 – £500 |
| 2-year Fixed | 4.2% – 4.7% | £858 – £963 (over 2 yrs) |
| 3-year Fixed | 4.0% – 4.5% | £1,249 – £1,412 (over 3 yrs) |
| 5-year Fixed | 3.8% – 4.3% | £2,070 – £2,355 (over 5 yrs) |
Rates as of June 2026. Actual rates vary by provider and deposit amount. Always check current best-buy tables before opening an account.
Simple Interest vs Compound Interest — What's the Difference?
This calculator lets you choose. Here's what each means in practice:
Simple Interest: Interest is calculated only on the original principal — not on previously earned interest. Common in India for many FD products and in some UK accounts that pay out interest monthly or annually rather than compounding it. Formula: Maturity = P + (P × R × T)
Compound Interest (Annual/AER): Interest earned in year one is added to the principal, and year two's interest is calculated on the larger amount. UK fixed bonds quote rates as AER (Annual Equivalent Rate), which already assumes annual compounding — so selecting "Annually" in the calculator matches the advertised AER. Formula: Maturity = P × (1 + R/n)^(n×T)
| £10,000 at 4.7% for 3 years | Maturity Value | Interest Earned |
|---|---|---|
| Simple Interest | £11,410 | £1,410 |
| Compound (Annually) | £11,476 | £1,476 |
| Compound (Quarterly) | £11,492 | £1,492 |
| Compound (Monthly) | £11,497 | £1,497 |
The difference between simple and monthly compound on this example is about £87 over 3 years — not dramatic on its own, but it scales up significantly with larger deposits and longer terms. On a £100,000 deposit it'd be closer to £870.
Is Now a Good Time to Fix a Rate?
This is the question everyone considering a fixed bond in 2026 is wrestling with. The Bank of England base rate sits at 3.75% as of May 2026, and the average one-year fixed rate has risen from 3.79% to 4.07% between March and May 2026 as geopolitical uncertainty pushed inflation expectations higher and encouraged providers to compete for savers.
The argument for fixing now: if rates fall further (which many economists had been predicting before recent events), locking in a 4.5-5% rate looks attractive in hindsight. The argument against: if inflation picks up and the Bank of England holds or raises rates, easy-access and shorter-term fixed rates might improve — and you'd be stuck on a lower fixed rate.
There's no right answer. But splitting — putting some in a 1-year fix for certainty and keeping some in easy access for flexibility — is a reasonable middle ground that many savers are using in 2026.
Frequently Asked Questions
What are the best UK fixed bond rates in 2026?
As of June 2026, the best 1-year UK fixed bond rates sit around 4.5–5% AER, with the top easy-access accounts offering up to 5% AER. Rates have risen from early 2026 levels as geopolitical uncertainty pushed inflation expectations higher and savings providers competed for deposits. Rates change frequently — check current best-buy tables on MoneySavingExpert or Moneyfacts before opening any account.
What is AER and how is it different from the gross rate?
AER (Annual Equivalent Rate) is the standardised rate that assumes interest is compounded and credited annually, allowing fair comparison between accounts that pay interest at different intervals. The gross rate is the actual rate before any compounding. When comparing UK savings accounts, always use the AER — it's the honest apples-to-apples comparison figure.
Can I access my money early from a fixed bond?
Generally no — most UK fixed-rate bonds do not allow early access to funds before the end of the agreed term. Some providers allow early closure in exceptional circumstances but apply an interest penalty, often equivalent to several months' interest. This is the key trade-off versus easy-access accounts: the higher rate comes at the cost of flexibility. Always check the specific terms before opening.
Is fixed deposit interest taxable in the UK?
Yes, fixed bond interest is taxable income in the UK. Basic-rate taxpayers have a £500 Personal Savings Allowance per year, higher-rate taxpayers get £250, and additional-rate taxpayers have no allowance. Interest exceeding your allowance is taxed at your marginal income tax rate. Keeping savings in a Cash ISA avoids this tax entirely, though ISA rates are typically slightly lower than the best fixed bond rates.
Should I fix for 1 year or 2 years in 2026?
There's no definitive answer — it depends on your view of where rates go next and your liquidity needs. The 1-year rate is currently similar to or slightly above the 2-year rate in many cases, which reflects market expectations that rates may continue to fall. Fixing for 1 year gives more flexibility to reassess at maturity. Fixing for 2 years provides longer certainty if you think rates will fall significantly. Many savers in 2026 are splitting between terms to balance both considerations.
What is the FSCS limit for fixed deposits in the UK?
The Financial Services Compensation Scheme (FSCS) protects up to £120,000 per person per banking licence (£240,000 for joint accounts). If you have more than this in one place, consider spreading across multiple institutions — but check that they hold separate banking licences, as some high-street names share a licence and count as one institution for FSCS purposes.