The best one-year fixed savings accounts – earn up to 4.25%

Fixed savings accounts, or fixed-rate bonds, are different from easy-access savings accounts as they let you earn high interest by locking your cash away for a fixed period.

These accounts can be ideal for anyone hoping to earn interest on their savings at a rate that’s guaranteed for a fixed period of time.

However, with the Bank of England holding interest rates at 3.75% in its February meeting, fewer fixed-term bonds can now beat inflation.

If you're looking to lock in your savings for a year, you can earn up to 4.25% interest. We list the best accounts on the market below.

We round up the best savings rates in a separate guide.

• The best one-year fixed rate is 4.25% with DF Capital.

One-year fixed savings accounts

Best 1 year fixed rate

Rova Savings Vault – 4.25% AER

Rova’s savings accounts are held with FCMB Bank (UK) Limited, which means that any deposits are covered by the FSCS scheme. You can save between £500 and £1 million – only £120,000 is FSCS-protected, and the account can be opened online in the Rova app.

View Deal

Union Bank of India (UK) Ltd Fixed Rate Deposit – 4.23% AER

This one year fixed saver by Union Bank of India (UK) is offering 4.23%. To open this account, you can start saving with £1,000 and deposit a maximum of £1 million. Interest is paid annually when your account matures. You can open the saver in branch or by post.

Chetwood Bank Fixed Rate Savings Account – 4.22% AER

To open this one-year fixed saver, you will need to fund it with at least £1,000 within 14 days. There is no maximum balance, and you can only open a sole account. Interest is paid at maturity. The account can be opened online.

AlRayan Bank Meteor Savings - 1 Year Fixed Term Deposit– 4.21% AER

You can open this fixed saver through Meteor Savings, a savings provider. You can save between £1,000 and £120,000. Interest is paid at maturity. This is currently the top-paying savings account on the market.

UBL UK 1 Year Fixed Term Deposit – 4.21% AER

This one-year fixed savings account pays 4.21% interest, and you have to stash between £2,000 and £1 million to qualify for the rate. You have ten calendar days to fund your account in order to secure the rate. The account can be opened and managed online, via post, or in branch. Interest can be paid monthly or annually.

Afin Bank 1-Year Fixed Term – 4.2% AER

This digital bank is offering a 4.2% fixed rate on its savings account. The minimum deposit requirement is £1,000, and you can save up to £200,000 (but only £120,000 will be FSCS-protected). The account can be opened online. Interest is paid at maturity.

Cynergy Bank 1 Year Fixed Bond – 4.2% AER

Cynergy Bank is returning 4.24% AER, and you can start saving with a minimum of £1,000. You have a 14-day window to make any deposits. You can save up to £1 million, and note that only £120,000 will be eligible for FSCS protection. The account can be opened and managed online.

LHV Bank 1 Year Fixed Rate Bond – 4.2% AER

LHV is paying a fixed interest of 4.2% on your savings. To take advantage, you will need to save a minimum of £1,000 and a maximum of £1 million. Keep in mind that only £120,000 of the amount will be eligible for FSCS protection. You have 14 days from the date of opening your account to make the deposit. You can open the account via the LHV app. Interest is paid at maturity.

Close Brothers Savings Fixed Rate Bond – 4.15% AER

With Close Brothers Savings, you can save between £10,000 and £2 million per account, but note that only £120,000 of the sum will be protected under the FSCS. You have to make the minimum deposit within ten days. The account can be opened online but you can also manage it via post or over the phone. Interest is paid at maturity.

GB Bank 1 Year Fixed Rate Bond – 4.15% AER

Earn 4.15% with this saver and open this account with a minimum £1,000 deposit. You can save up to £100,000. The account can be opened online, and you have up to 21 calendar days to deposit your funds. Interest is paid at maturity.

Is a fixed savings account right for me?

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.