A UK fixed-rate bond or a European term deposit works the same way in plain terms: you put money in for a set period, the rate is fixed, and you usually cannot take the money out freely. That can be useful when you know when you will need the cash.
Keep everyday emergency savings in an easy-access account, even if the rate looks a little lower.
Use the yearly rate — then read the rules
AER (Annual Equivalent Rate) helps you compare products that pay interest in different ways. Use it to make a shortlist. Then read whether you can withdraw early, and what happens at the end of the term.
Some accounts renew automatically onto a lower rate if you do nothing. Put a reminder in your calendar two weeks before the end date.
Check who protects your deposit
In the UK, eligible deposits at authorised firms are generally covered by the FSCS — often up to £120,000 per person, per firm. In the EU, national schemes usually cover eligible deposits up to €100,000 per person, per bank.
If the brand is based in another country, check which protection scheme applies before you send £20,000 or €20,000. Keep a copy of that information.
A practical way to decide
Write down when you need the money. Compare fixed products of a similar length. Check protection and early-exit costs. Then choose. If you are unsure, put only part of the money into a fixed deal and keep the rest easy to access.