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 5.16% interest. Over 664 fixed-rate bonds are offering inflation-busting savings for you to choose from.
- The best one-year fixed deal is 5.16% with Cynergy 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.
But as it stands, it's a close margin with an easy-access saver, offering returns of up to 5.2%. So, it's worth weighing up which account suits your savings needs better.
One-year fixed savings accounts
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. Start saving with £1,000. Interest is paid annually when your account matures.
You must make any deposits within the first 14 days, and the account can be opened 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 the saver online.
SmartSave 1 Year Fixed Rate Saver – 5.15% AER
Open this fixed saver with SmartSave and earn 5.15%. 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.
Close Brothers 1 Year Fixed Saver – 5.15% AER
This saver requires a minimum deposit of £10,000 and you can save up to £5 million. Interest is calculated daily and paid at maturity. Open this saver online.
Tandem Bank 1 Year Fixed Saver – 5.12% AER
Open this account with just £1 and save up to £2.5 million. However, only £85,000 of your amount will be protected under the FSCS.
Any deposits need to be made in the first 14 calendar days from opening the account. The saver can be opened and managed online.
Shawbrook Bank 1 Year Fixed Rate Bond - 5.1% AER
This saver requires a minimum deposit of £1,000 and you can save up to £2million. But only up to £85,000 is protected by the FSCS.
Interest is paid at maturity and you can open the account online and manage it either online or over the phone.
Stream Bank 1 Year Fixed Account – 5.05% AER
Start saving with £1,000 and deposit up to £100,000 in this account.
Your savings will be transferred into a Maturity Saver Account after one year if you don't move your funds before the term ends. The account can be opened online and interest is paid at maturity.
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.
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