Disclaimer
MoneyWeek uses data from Defaqto to regularly update this article. 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. This article may contain affiliate links – when you purchase through links on our site, we may earn a commission*
If you’re looking for the best savings account and happy to lock some cash away for a year, you can now earn nearly 6% interest with a fixed account. Not bad for a year’s return.
- The best one-year fixed deal is 5.8% with Metro Bank.
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. Currently, you can earn a table-topping 5.22% AER with Metro Bank. But keep in mind, as interest rates are frozen at 5.25% again, you'll need to act fast to bag the best rates before they get pulled.
One-year fixed savings accounts
Union Bank of India 1 Year Fixed Bond - 5.7% gross
This one-year fixed bond is offering 5.7% when you fix your money for a year. Open the account with a minimum deposit of £1,000 and save up to £1million.
Open this saver in branch or by post. If you open by post, you will need to enclose a cheque of a minimum £100 on your existing UK bank account or building Society.
Interest is calculated daily and paid annually.
Al Rayan Bank 1 Year Fixed Saver - 5.7%
This Sharia-compliant bank is offering an expected profit rate of 5.7% on your savings. You must deposit at least £5,000 and you can save up to £1million.
Profit can be taken quarterly or reinvested. You can open this account online or by phone.
SmartSave 1 Year Fixed Rate Saver - 5.66% AER
Open this account with £10,000 and save up to £85,000. Interest is paid annually on maturity and you can open the saver online.
You can't hold a joint account with this saver and must make any deposits within the first 14 days of opening this account.
İşbank 1 year Fixed Term Deposit - 5.65% AER
You will need to pay a minimum deposit of £1,000 to open this account. The maximum amount is £85,000 and all your money will be protected by the FSCS.
Interest is paid monthly. You can open and manage your savings account online.
Charter Savings Bank 1 year Fixed Rate Bond - 5.52% AER
Take advantage of this one year fixed saver online offering 5.52% AER. It requires a minimum deposit of £5,000 and you can save up to £1million. £85,000 of this amount is protected by the FSCS. Interest is paid annually on maturity.
Secure Trust Bank 1 Year Fixed Rate Bond - 5.51% AER
This saver requires a minimum deposit of £1,000 and you can save up to £1million. Only up to £85,000 is protected by the FSCS.
You can only make transfers into your account within 30 days of opening the saver. Interest is paid annually at maturity on 3 January 2025.
You can open the account online. MoneyWeek has noticed daily rate changes with Secure Trust Bank, so if you want to bag this rate, you should act fast.
Kent Reliance Easy Access Account - 5.5% AER
You'll need a minimum of £1,000 to open this account, and you can save up to £1million. But bear in mind that only up to £85,000 of your money is protected by the FSCS.
Interest is paid annually. You can open the account online or in branch.
Gatehouse 1 Year Fixed Term Deposit Woodland Saver - 5.5% AER
You can start saving in this Sharia-compliant bank with £1,000 and save up to £1million. The account can be opened online, and the expected profit is paid annually when the saver matures.
For every Gatehouse Woodland savings account opened or renewed, the provider plants a tree in the UK woodlands.
Habib Bank Zurich HBZ Fixed Rate eDeposit – 5.5% AER
Open this account with a minimum deposit of £5,000 and save up to £1 million. You will need to fund your account within 30 days of opening it.
Interest is paid annually and you have the choice of opening a sole or joint account. The savings account must be opened 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 rate is almost always guaranteed (except for Shariah-compliant accounts) so you know exactly what you’re going to get. Also, now that rates are higher, you may as well earn something on your cash holdings if you can.
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.
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