What interest rate does the Principality Building Society 5 Year Fixed Rate Bond pay?

The Principality Building Society 5 Year Fixed Rate Bond pays 4.65% AER, fixed for 5 years.

How much interest could I earn?

Saving £10,000 for 5 years would earn about £2,552 at 4.65% 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 £2,000,000.

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 annually or monthly.

Who can open this account?

New and existing Principality Building Society customers can open it. You can open it online, in branch or by post.

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 five-year fixed rate bonds?

At 4.65% AER it ranks 25th of 39 five-year fixed rate bonds we track. The best pays 5.37% and the average is 4.79%.

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Principality Building Society 5 Year Fixed Rate Bond Review

A five-year fixed rate bond from Principality Building Society. It ranks 25th of 39 five-year fixed rate bonds we track.

Rate checked Oct 2026Got this account? Leave a review

Fixed rate · 5 years

4.65%AER

Rate checked Oct 2026Got this account? Leave a review

Protection

FSCS£120,000

Min balance

£500

Max balance

£2,000,000

Access

At maturity only

Interest paid

Annually or Monthly

How It Stacks Up

Ranks 25th of 39

5-year fixed bonds we track

Below average

This account 4.65%

UK CPI (Aug 2026): 3.10%; Pays 1.55% more
Average 5-year fixed: 4.79%; Pays 0.14% less
Best 5-year fixed: 5.37%; Pays 0.72% 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 5 years

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Estimated returns with Principality Building Society's Fixed Rate

What you could earn with Principality Building Society's 5 Year Fixed Rate Bond.

Estimated interest

£1,000 saved

£255

At 4.65% AER

£5,000 saved

£1,276

At 4.65% AER

£10,000 saved

£2,552

At 4.65% AER

£2,000,000 saved

£510,303

At 4.65% AER

Estimated over the 60-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 Principality Building Society 5 Year Fixed Rate Bond

Jan WatermannCo-Founder, DepositScout

Principality's five-year bond pays 4.65%, which is below the market average for fixed-rate savings and 0.72% behind the category leader at 5.37%, so it is hard to recommend over alternatives like Hampshire Trust Bank's 5 Year Online Fixed Saver at 5.05% or Skipton Building Society's equivalent at 5.00%. The rate does beat August 2026 CPI of 3.1% by 1.55%, so your money grows in real terms. The main catch is the usual one for fixed bonds: no access at all until maturity, with a minimum of £500 to open.

Compare Fixed Rate Bonds