18 months Fixed Rate Savings at 4.25%

How do 18-month fixed-rate savings accounts work?

An 18-month fixed-rate savings account allows you to earn a guaranteed amount of interest in return for not accessing the money you deposit for 18 months. 

My Community Finance work with credit unions that offer their members fair, ethical banking services.

Credit unions are not-for-profit organisations, using the money they earn to offer improved rates for their savers and borrowers, or to reinvest back into the union, with the goal of enhancing their services and extending their reach to assist more individuals. 

What do I need to open an 18-month fixed-term savings account?

In order to open an 18-month fixed-rate savings account with one of our partner credit unions, you need to become a member. Our partner credit unions have very wide criteria for membership and accept almost all fields of employment (including self-employed).

If you’re unemployed, retired, or a student, the credit unions also accept applications from members of trade unions or associations such as the Co-op or National Trust. 

When you apply for an 18-month fixed-term savings account via our website, we’ll help you choose the credit union that best suits your financial circumstances. 

As well as fulfilling the membership criteria, to open an 18-month fixed-rate savings account, you’ll also need to:

• Be aged 18 or over

• Live in the UK (excluding the Isle of Man)

• Have a UK current account

How much can I put in an 18-month fixed-rate savings account?

When you open an 18-month fixed-rate savings account via My Community Finance, we’ll ask you how much you want to save. 

The credit unions we work with have a minimum deposit requirement of £1,000 and a maximum of £85,000. 

Is an 18-month fixed-rate savings account right for me?

Determining whether an 18-month fixed-term savings account is a good option for you depends on your financial circumstances. If you anticipate requiring immediate access to your savings in case of an emergency, or if you intend to make gradual additions to your savings, a fixed-term account may not be the right choice for you.

However, if you're the type of person who would benefit from reducing the temptation to access and spend your savings or want to take advantage of the higher interest rates offered by fixed-term accounts, then an 18-month fixed-rate savings account could be a great option.

How do I apply for an 18-month fixed savings account?

If you’ve decided an 18-month fixed-term savings account is right for you, you can apply via our website using our straightforward form. Here’s how:

• Fill out the online application form - Tell us how much you want to save

• Read & accept the terms and conditions of your 18-month fixed-rate savings account - Carefully read the terms and conditions. The content of the terms and conditions is not intended to amount to advice on which you should rely. If you are not sure of the content of the terms and conditions, you should obtain advice from a professional or specialist before agreeing to them. 

Our team will review your application and aim to get back to you within two business days (Monday-Friday) about the next steps. 

Once you’ve successfully opened your savings account, you’ll have 7 days to deposit the total amount you wish to save, and you won’t start to earn interest on your money until you do. 

What are the alternatives to 18-month fixed-term savings accounts?

The credit union partners we work with offer lots different savings products, in addition to 18 month fixed term accounts. These include:

• Shorter fixed-term savings accounts - If you’re concerned about committing to an 18-month fixed-term savings account but still wish to enjoy the interest rates provided by fixed-term savings, you might want to  consider a 6-month or 1-year fixed-rate savings account.

• Longer fixed-term savings accounts - Longer-term fixed-rate savings accounts, such as a 2-year or 3-years, sometimes offer higher interest rates than shorter fixed-term accounts. These can be a good option if you’re confident that you can afford to go for an extended period without accessing your savings and want to lock in an interest rate for the longer term.

• Easy access savings account - If you think you’re likely to need or just want to keep access to your savings, but still want to earn interest on your balance, then consider an easy access savings account.

Will I be able to access my money before the end of the term?

When you open an 18-month fixed-rate savings account with one of the credit unions we work with, you agree not to withdraw your savings until the end of the term. 

Withdrawing money from your 18 month fixed rate account before the end of the term may be possible in an emergency situation. If you need to do this, please get in touch with the credit union your savings account is with to discuss your options.

If you do withdraw your money before your term ends you will have to give back any interest earnt. 

Will my money be safe in an 18-month fixed-rate savings account?

Absolutely. The credit unions we work with are authorised and regulated by both the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (Bank of England).

Additionally, all savings accounts provided by the credit unions we work with are protected by the FSCS for up to £85,000. This means in the unlikely event a bank or credit union goes out of business, the government will ensure your money is returned up to this amount.

Can I add more money during the 18-month fixed term?

After you’ve opened your 18-month fixed-rate savings account and deposited the full amount specified during your application, you will not be able to make any additional deposits.

However, if you have more money that you would like to save, you can open another savings account with one of the credit unions we collaborate with. The total amount you save with each credit union cannot exceed £85,000.