Disclaimer
All the banks we mention are protected by the Financial Services Compensation Scheme (FSCS), meaning up to £85,000 of your savings are protected should a bank go bust.
If you’re looking for the best savings account and are happy to fix your savings for a year, you can now earn up to 5.22% interest.Over 600 fixed-rate bonds are offering inflation-busting savings for you to choose from.
- The best one-year fixed deal is 5.22% with My Community Finance.
These accounts, also known as fixed-rate bonds, tend to offer better rates than easy access savings accounts, which are ideal for anyone hoping to gain some interest on short-term savings.
But as it stands, it's a close margin with an easy-access saver also offering returns of up to 5.22%. So, it's worth weighing up which account suits your savings needs better.
One-year fixed savings accounts
Best 1 year fixed ...
My Community Finance 1 year Fixed Rate - 5.22% AER
You can open this market-leading one-year fixed with £1,000 and go up to £85,000. You need to make your deposit within seven days of opening the saver.
Interest is paid annually when your account matures. The account can be opened online.
Ziraat Bank 1 Year Fixed Saver (via Raisin) - 5.21% AER
You can open this one-year fixed saver by Ziraat Bank with £1,000 and save up to £85,000. Interest is calculated daily and paid annually.
Note that this account can only be opened online via the Raisin website to earn the 5.25% rate.
Vanquis Bank 1 Year Fixed Bond - 5.21%
Open this saver with £1,000 and save up to £85,000. This account can be opened online and interest is awarded monthly or annually.
You can also open this saver as a sole or joint account.
Al Rayan Bank 1 Year Fixed Saver– 5.2%
This Sharia-compliant bank is offering an expected profit rate of 5.2% on savings. Profit can be taken quarterly or reinvested.
You must deposit at least £5,000 and you can save up to £1million. You can open this account online or by phone.
Close Brothers Savings 1 Year Fixed Rate Bond - 5.17%
You can open this one-year fixed with £10,000 and go up to £2million. But note that only £85,000 of your deposit will be eligible for protection under the FSCS.
You need to make the full deposit within ten calendar days of your application being accepted.
Interest is paid annually when your account matures. The account can be opened online but you can also manage it via post or over the phone.
SmartSave 1 Year Fixed Rate Saver– 5.17% AER
Open this fixed saver with SmartSave and earn 5.17%. You can save up to £85,000 and interest is paid at maturity.
You need to open the account with £10,000. All deposits must be made within the first 14 days of opening the account and the saver can be opened online.
Zenith Bank (UK) Ltd 1 Year Fixed Term Deposit – 5.15% AER
This account is ideal if you have a big amount to save, as you can deposit up to £2million. Interest is paid annually when your account matures.
Start saving with £1,000. You must make any deposits within the first 14 days, and the account can be opened online. You can manage your account over the phone, via email or by post.
Atom Bank 1 Year Fixed Saver – 5.15% AER
Earn 5.15% on up to £100,000 with this fixed savings account. But note, only £85,000 is protected by the FSCS. Interest will be paid at maturity.
Open the saver with just £50. Your deposit window is a week from the day you open the account and you can open and manage your account on the Atom Bank app.
Hodge Bank 1 Year Fixed Rate Bond – 5.15% AER
With Hodge Bank, you can fund anywhere from £1,000 to £1million in the account, but only £85,000 is protected by the FSCS.
You have up to 14 working days to transfer any funds into the account.
Interest is paid on maturity and you can open the saver online.
MBNA Fixed Saver 1 Year – 5.15% AER
Credit card provider MBNA is offering 5.15% on its one-year fixed saver. You can save up to £750,000, but only up to £85,000 is protected by the FSCS. Interest is paid at maturity.
You need at least £1,000 to open the saver. You have a 14-day window to fund your account. Open and manage the saver online.
Is a fixed savings account for me?
If you have a lump sum sitting in an account that offers a lower interest rate, you could get more for your money by moving it to a fixed-term account. The interest rates are almost always guaranteed (except for Shariah-compliant accounts) so you know exactly what you’re going to get.
If you’re happy to lock your money away for longer, you have the option of two or five-year fixed-rate accounts which might offer a better interest rate.
“However, if you’re looking to save for five years or more, investing gives you a better growth potential as you benefit from compounding and you have a stronger chance of making your money grow and beating inflation. But investing is not risk-free and it can take time for your money to grow,” says Kalpana Fitzpatrick, MoneyWeek’s senior digital editor and author of Invest Now.
Once a fixed period ends, you will have to open another account – either with the same bank or elsewhere. It is also worth noting that if you fix an account and interest rates go up, you will be stuck with the rate you have until the fixed period ends.
