Fixed-rate products are built for people who leave the money until the end. If your circumstances change — illness, job loss, family needs, a house move — an early exit can cost you a large part of the interest you hoped to earn. Some products barely allow early access at all.
That does not make fixed rates a bad idea. It means you should only fix money you can truly leave alone.
Turn the rules into a number
Charges are often described as a certain number of days of interest, a percentage of your balance, or loss of interest already earned. Before you apply, work out what that means on your money — for example on £25,000.
- Write the early-exit cost in money, not vague words
- Do not assume special exceptions will apply to you
- Do not lock away money you rely on for emergencies
If your plans are uncertain
Choose a shorter term, keep more in easy-access savings, or split the money. Notice accounts — where you wait a set number of days before withdrawing — can sit in the middle for some people, but they are still a poor home for true emergency cash.