What interest rate does the M&S Bank M&S 3 Year Fixed Rate Savings pay?

The M&S Bank M&S 3 Year Fixed Rate Savings pays 4.00% AER, fixed for 3 years.

How much interest could I earn?

Saving £10,000 for 3 years would earn about £1,249 at 4.00% 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 £500 and up to £1,000,000.

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?

Interest is paid on each anniversary of opening.

Who can open this account?

New and existing M&S Bank customers can open it. You can open it online, by post or by phone.

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 three-year fixed rate bonds?

At 4.00% AER it ranks 48th of 51 three-year fixed rate bonds we track. The best pays 5.20% and the average is 4.69%.

Dashboard

Fixed Rate

M&S Bank M&S 3 Year Fixed Rate Savings Review

A three-year fixed rate bond from M&S Bank. It ranks 48th of 51 three-year fixed rate bonds we track.

Rate checked Oct 2026Got this account? Leave a review

Fixed rate · 3 years

4.00%AER

Rate checked Oct 2026Got this account? Leave a review

Protection

FSCS£120,000

Min balance

£500

Max balance

£1,000,000

Access

At maturity only

Interest paid

Anniversary

How It Stacks Up

Ranks 48th of 51

3-year fixed bonds we track

Well below average

This account 4.00%

UK CPI (Aug 2026): 3.10%; Pays 0.90% more
Average 3-year fixed: 4.69%; Pays 0.69% less
Best 3-year fixed: 5.20%; Pays 1.20% less

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

Compare fixed bonds

Pros and cons

Pro: New and existing savers
Con: Your money is locked in for 3 years

Good to Know

Early withdrawals will result in a £100.00 fee (if the deposit is under £50,000.00).

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Estimated returns with M&S Bank's Fixed Rate

What you could earn with M&S Bank's M&S 3 Year Fixed Rate Savings.

Estimated interest

£1,000 saved

£125

At 4% AER

£5,000 saved

£624

At 4% AER

£10,000 saved

£1,249

At 4% AER

£1,000,000 saved

£124,864

At 4% AER

Estimated over the 36-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 M&S Bank M&S 3 Year Fixed Rate Savings

Jonny PeaseCo-Founder, DepositScout

The M&S 3 Year Fixed Rate Savings pays 4.00% and suits savers who want a straightforward three-year fix with a low £500 minimum. That said, the rate sits below the market average for fixed-rate accounts, trailing the best available by 1.37%, and at 4.00% it only beats current CPI of 3.1% by 0.90%. The obvious catch is no access until maturity. If you want a three-year fix, Afin Bank's 3-Year Fixed Term Account at 4.86% or Kent Reliance's 3 Year Fixed Rate Bond at 4.96% are worth a look first.

Compare Fixed Rate Bonds