What interest rate does the The Co-operative Bank 2 Year Fixed Term Deposit pay?

The The Co-operative Bank 2 Year Fixed Term Deposit pays 4.09% AER, fixed for 2 years.

How much interest could I earn?

Saving £10,000 for 2 years would earn about £835 at 4.09% AER. This assumes the rate stays the same and interest stays in the account.

How much can I pay in?

You can deposit at least £1,000.

Can I withdraw my money?

No. Your money is locked in until the fixed term ends, so only put in what you won't need before then.

When is interest paid?

You can choose to have interest paid monthly or annually.

Who can open this account?

New and existing The Co-operative Bank customers can open it. You can open it online or in the app.

Is my money protected?

Yes. Eligible deposits are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per person, per banking licence.

How does it compare with other two-year fixed rate bonds?

At 4.09% AER it ranks 62nd of 63 two-year fixed rate bonds we track. The best pays 5.16% and the average is 4.61%.

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Fixed Rate

The Co-operative Bank 2 Year Fixed Term Deposit Review

A two-year fixed rate bond from The Co-operative Bank, with a £1,000 minimum deposit. It ranks 62nd of 63 two-year fixed rate bonds we track.

Rate checked Oct 2026Got this account? Leave a review

Fixed rate · 2 years

4.09%AER

Rate checked Oct 2026Got this account? Leave a review

Protection

FSCS£120,000

Min balance

£1,000

Max balance

No limit

Access

At maturity only

Interest paid

Monthly/Annually

How It Stacks Up

Ranks 62nd of 63

2-year fixed bonds we track

Well below average

This account 4.09%

UK CPI (Aug 2026): 3.10%; Pays 0.99% more
Average 2-year fixed: 4.61%; Pays 0.52% less
Best 2-year fixed: 5.16%; Pays 1.07% less

Inflation: ONS. Averages and best rates: accounts on DepositScout.

Compare fixed bonds

A Good Fit For

Pro: New and existing savers
Pro: Savers who want a monthly income

Worth Weighing Up

Con: Your money is locked in for 2 years
Con: You need at least £1,000 to open it

Good to Know

Available exclusively to existing Co-operative Bank customers whose Fixed Term Deposit is maturing. Minimum deposit £1,000, maximum £1,000,000; can be opened as a sole or joint account via online form, post, or branch.

Please verify all details with the provider – see our Disclaimer

See all The Co-operative Bank accounts

Estimated returns with The Co-operative Bank's Fixed Rate

What you could earn with The Co-operative Bank's 2 Year Fixed Term Deposit.

Estimated interest

£1,000 saved

£83.47

At 4.09% AER

£5,000 saved

£417

At 4.09% AER

£10,000 saved

£835

At 4.09% AER

£50,000 saved

£4,174

At 4.09% AER

Estimated over the 24-month term, if the rate stays the same and interest is left in. Amounts outside the account's minimum or maximum aren't shown.

Work out the tax on your interestSee how much of this interest could be taxed.

Our Expert Opinion on The Co-operative Bank 2 Year Fixed Term Deposit

Jan WatermannCo-Founder, DepositScout

The Co-operative Bank's 2 Year Fixed Term Deposit pays 4.09%, which sits below the market average and 1.26% behind the fixed-rate leader at 5.35%, so I would not call this rate compelling. It does beat August 2026 CPI of 3.1% by 0.99%, which is something. The real catch is that your money is completely locked away for two years, and on maturity it rolls into a variable-rate Smart Saver unless you act. With a £1,000 minimum, savers wanting a two-year fix would do better looking at Kent Reliance's 4.91% alternative.

Compare Fixed Rate Bonds