2 year Fixed Rate Savings at 4.58%

How does a 2 year fixed rate savings account work?

In exchange for being unable to withdraw your funds for a specific time period, fixed rate savings accounts provide a guaranteed interest rate. A 2-year fixed rate savings account is one of these types of account, where you keep your money locked away for a fixed period of two years.

My Community Finance works with credit unions that offer fair and ethical banking services to their members. Credit unions are not-for-profit organisations that distribute all of their profits to their members in the form of interest on savings or by reinvesting the profits back into the credit union to enhance their services.

What do I need to open a 2 year fixed term savings account?

To open a 2 year fixed term savings account with one of our the credit unions we work with, you’ll need to:

• Be aged 18 or over

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

• Have a current account in the UK

• Meet the membership requirements

In order to open a 2-year fixed rate savings account with one of the credit unions we work with, you must first become a member. Our credit union partners accept members from nearly all fields of employment, as well as members of various organisations, such as the National Trust.

When you apply using our online form, we’ll match you to one of our credit union partners that offers the best 2 year fixed rate savings account for you based on the membership criteria you meet.

How much can I deposit in a 2 year fixed rate savings account?

2 year fixed rate savings accounts from the credit unions we work with allow you to save between £1,000 and £85,000. 

When you apply for a 2 year fixed rate savings account via our online form, you’ll tell us how much you want to save.

Is my money protected in a 2 year fixed term savings account?

All of the savings accounts provided by the credit unions we work with are protected by the Financial Services Compensation Scheme (FSCS) for up to £85,000 per person. This means that 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.

Is a 2 year fixed rate savings account a good idea?

2 year fixed term savings accounts can be a good option for those who are looking for higher returns on their savings and can afford not to access their money for two years. 

Whether or not a 2 year fixed rate savings account is the right option for you will depend on your personal financial circumstances. 

A 2 year fixed savings account may not be suitable for you if you plan to gradually add to your savings or think you may need to withdraw your money for unexpected expenses, like car or boiler repairs, during the two year term.

What are the alternatives to 2 year fixed term savings accounts?

A 2 year fixed rate savings account won’t be the best choice for everyone; you may be looking to earn higher interest rates with an even longer fixed term or may need to maintain access to your savings in case of emergencies. Here’s a list of some alternative savings accounts for you to consider: 

• Shorter-period fixed term savings accounts - If you’re worried about not being able to access your savings for two years, it may be a good idea to try a shorter fixed term savings account. The credit unions we work with also offer 6, 12, and 18 month fixed term savings accounts.
  
  

• Longer-period fixed term savings accounts - If you’re trying to get the most out of your savings and can afford not to access your savings for an extended period of time, a longer fixed term savings account, such as a three year fixed term account might be more suitable for you. These accounts sometimes offer a higher interest rate and allow you to lock in an interest rate over a longer period of time.
  
  

• Easy access savings accounts - If you’re going to need access to your savings in an emergency or want to add to your savings gradually, then an easy access savings account might be a better option for you. 

How do I apply for a 2 year fixed savings account?

Once you’ve decided that a 2 year fixed rate savings account is the right choice for you, to open an account you’ll need to:

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

• Read & accept the terms and conditions of your 2 year fixed rate savings account - Make sure you 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’re not sure of the content of the terms and conditions, you should obtain advice from a professional or specialist before agreeing to them. Once you are happy, you can accept them. 

Once you’ve opened your 2 year fixed term savings account, you’ll have 7 days to deposit your savings with the credit union you’ve been matched with. If you decide to deposit a different amount than you told us in your application, you’ll need to contact us so we amend your details. Once the credit union receives the total amount from you, your 2 year fixed term period will begin and you’ll start earning interest.

What if I need to access my money before the end of the term?

Money in a fixed term savings account is not meant to be accessed before the term you’ve signed up to is finished. 

Our credit union partners will always try to help if you need to access the money in an emergency. If you arrange to withdraw your deposit, you will lose any interest earnt on your 2 year fixed rate savings account so far.

Can I add more money during the 2 year fixed term?

Once you’ve successfully opened your 2 year fixed term savings account, you have 7 days to deposit the full amount you’ve told us you wish to save. After this time you won’t be able to add any more savings to your account. 

However, if at a later date, you have more money to put into a fixed savings account, you’re welcome to open another savings account with one of the credit unions we work with. The total amount you save with each credit union cannot exceed £85,000.