Resources

Fixed Term Structured Deposits

Learn about Fixed Term Structured Deposits and how they work

Fixed Term Structured Deposits are deposit-based savings products where returns are linked, in part or in full, to market performance. Some combine a fixed rate of interest alongside a market-linked return, while others offer a return that depends entirely on market performance. 

We have recently launched a range of simple Fixed Term Structured Deposits that have been designed specifically for savers to access directly.

These products combine a fixed rate of interest with the opportunity for a small additional market-linked bonus.

This guide explains how these products work, including how fixed interest and market-linked bonuses are applied.

At a glance 

Your bonus depends on market performance

The bonus is linked to the FTSE 100. If the conditions are met, you receive the bonus. If not, you still receive your original deposit back plus the fixed interest earned. 

Designed for savers seeking an additional return opportunity

Because the bonus is conditional, banks may be able to offer higher overall returns than standard fixed term deposits.

How it compares to a regular Fixed Term Deposit

It is similar to a regular Fixed Term Deposit, but with one extra feature linked to what the stock market does whilst you hold the deposit.  

Fixed Term Deposit  Fixed Term Structured Deposit
Your money is locked away for a set time  Your money is locked away for a set time 
You earn a fixed rate of interest  You earn a fixed rate of interest
You know exactly how much you’ll get back in advance You may earn an extra bonus at the end, depending on the stock market so the exact amount of interest you earn is not known in advance
Eligible deposits protected up to FSCS limits Eligible deposits protected up to FSCS limits

How do the ones offered by Meteor work?

  1. Just like a regular Fixed Term Deposit, you save your money for a fixed term (for example, 2 years) and…
  2. You earn a fixed rate of interest which accumulates, ready to be paid at the end.
  3. Then, near the end of the term, we check how the FTSE 100 has performed
  4. If the FTSE 100 is at or above where it started, you also receive an extra bonus.
  5. If it isn’t, you still keep the interest you’ve already earned - just without the bonus.
The FTSE 100 is a list of the 100 largest companies in the UK, and it’s often used as a simple measure of how the UK stock market is doing. You don’t invest in these companies directly. We just use the FTSE 100 as a reference point. 

What affects the bonus? 

Only one thing: 

Whether the FTSE 100 is at or above its starting level near the end of the term. The rules are set upfront, so you always know what needs to happen before you put your savings away e.g. how long the term is, the dates we check the FTSE 100 and what the bonus interest rate is.

Is my money safe? 

The Financial Services Compensation Scheme protects deposits of up to £120,000 per person, per UK-regulated banking group, if the product is offered by a UK-regulated bank or financial institution. Your initial deposit is protected under the FSCS up to these eligible limits, regardless of what happens to the FTSE 100. 

With Fixed Term savings products like these, your money is locked in for the agreed term and early access is generally not permitted. In very exceptional circumstances, the deposit‑taking bank may allow withdrawal, but this is likely to involve penalties that could mean you get back less than you put in. 

If you keep the deposit until the end of the fixed term, your money will be returned in full alongside any interest earnt. The only uncertainty is whether you receive the bonus.

 

Who are Fixed Term Structured Deposits for? 

If you’re happy with the fixed rate and see the bonus as a possible extra, this type of savings product may suit you. 

If you’re relying on the bonus or expecting it to be paid, it probably isn’t right for you. A regular Fixed Term Deposit may be more suitable as this gives complete certainty about your total interest. 

They may be suitable if you:  They may not be suitable if you:
  • Are happy to lock your money away for a set time
  • Like earning a fixed rate of interest, with the chance of a bonus
  • Understand the bonus may not be paid 
  • Need access to your money before the end of the term
  • Want savings interest that is fixed and known, with no conditions
  • Would be unhappy not receiving the bonus

Interested in Fixed Term Structured Deposits?

Meteor provides access to a range of Fixed Term Structured Deposits from UK-Authorised Banks, helping savers explore products that combine fixed interest with the potential for an additional market-linked bonus. With Meteor, you can:

See products

  1. Access carefully selected savings products from trusted providers

  2. Apply online securely and conveniently

  3. Receive support from our experienced team throughout

  4. Get assistance with ISA transfers where applicable

See products

Important

  • The information provided here is for informational and educational purposes only and does not constitute financial advice. We highly recommend consulting with a financial adviser or professional before making any financial decisions. Your financial situation is unique, and the information provided may not be suitable for your specific circumstances. We are not liable for any financial decisions or actions you take based on this information.