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 period of time.
Short-term bonds have seen their biggest hike in 11 months, according to Moneyfacts. If you're happy to lock in your savings for a year, you can still earn up to 4.59% interest, which beats inflation.
However, with the Bank of England holding interest rates in June, many top-paying savings accounts could lower their rates.
We list the best accounts on the market now.
One-year fixed savings accounts
GB Bank 1 Year Fixed Rate Bond – 4.58% AER
Earn 4.58% 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.
StreamBank Fixed Rate Account – 4.52% AER
You can earn 4.52% AER with Stream Bank if you open the saver with £1,000. You can save up to £100,000, but you’re only eligible for FSCS protection for up to £85,000 of your deposit.
Interest is paid at maturity. The account can be opened online.
Tandem Bank 1 Year Fixed Saver – 4.52% AER
With Tandem, you can open a saver from this saver with just £1, and save up to £2.5 million. Note that only £85,000 is eligible for FSCS protection.
You have 14 days from opening your account to fund any money in the saver. Interest is paid annually on maturity, and this account can be opened online.
Union Bank of India (UK) Ltd Fixed Rate Deposit - 4.47% AER
This one year fixed saver by Union Bank of India (UK) is offering 4.47% and you can start saving with £1,000. You can deposit a maximum of £1 million.
Interest is paid annually when your account matures and you can open the saver in branch or by post.
Zenith Bank (UK) Ltd 1 Year Fixed Term Deposit - 4.47% AER
You can open this account with £1,000, and save up to £2 million. Keep in mind that only £85,000 of your money is eligible for FSCS protection. Once you open the account, you are not able to add any additional funds.
The account can be opened online, and managed by post. Interest is paid on maturity.
Vanquis Bank 1 Year Fixed Bond - 4.46% AER
Open this fixed saver with £1,000 and save up to £250,000. Keep in mind that only £85,000 will be protected by the FSCS.
The first deposit must be made within 30 days of submitting your application, and any further funds within five working days of the initial payment.
This account can be opened and managed online. Interest is paid at maturity.
Conister Bank 1 Year Fixe Rate – 4.45% AER
You can open this account by depositing between £5,000 and £100,000, but note that only £85,000 of your amount will be protected under the FSCS, not the entire sum.
The account can be opened online, and interest is paid annually.
Al Rayan Bank Raisin UK - 1 Year Fixed Term Deposit – 4.4% AER
Earn 4.4% with this one-year fixed from Al Rayan Bank – but you need to sign up via Raisin to get this rate. You can save between £1,000 and £85,000.
Interest is paid on maturity. The account can be opened online.
Chetwood Bank Fixed Rate Savings Account – 4.4% 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.
Close Brothers Savings Fixed Rate Bond – 4.4% AER
This fixed saver requires a minimum deposit of £10,000 and you can save up to £2 million. Only up to £85,000 will be eligible for protection under the FSCS scheme.
The account can be opened online and managed online, post, or over the phone. Interest is paid annually.
Gatehouse Bank 1 Year Fixed Term Woodland Saver – 4.4% AER
Open this account with £1,000 and save up to £1 million. But note that this is a Sharia-compliant bank, so you earn an expected profit rate.
You can open the saver online, and the expected profit is paid monthly or annually at maturity.
Is a fixed savings account 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.
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