The best one-year fixed savings accounts – earn up to 4.41%
One-year fixed savings accounts are offering inflation-beating rates of up to 4.41%. We've rounded up the best deals available on the market now
All the financial institutions we feature are protected by the Financial Services Compensation Scheme (FSCS), meaning up to £120,000 of your savings are protected should a bank go bust.
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.
Article continues belowIf you're looking to lock in your savings for a year, you can earn up to 4.41% 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 4.41% with Castle Trust Bank.
One-year fixed savings accounts
DF Capital 1 Year Fixed Rate Deposit – 4.4% AER
This account by DF Capital pays 4.4% interest on your savings if you deposit between £1,000 and £250,000 in your account within 14 days. Only £120,000 is eligible for FSCS protection. The account can be opened online, and interest is paid on maturity.
MBNA Fixed Saver 1 Year – 4.36% AER
You will need to pay a minimum deposit of £1,000 to open this account. The maximum amount is £750,000. Only a maximum of £120,000 will be protected by the FSCS. You can add more money to the account for 14 days after it is opened, and interest is paid on maturity. You can open the account online and manage it by telephone.
Union Bank of India (UK) Ltd Fixed Rate Deposit – 4.35% AER
This one year fixed saver by Union Bank of India (UK) is offering 4.35%. 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.
Habib Bank Zurich plc HBZ Fixed Rate e-Deposit Account – 4.34% AER
Switzerland-based Habib Bank AG Zurich is paying 4.34% provided you deposit between £5,000 and £1 million – but the FSCS scheme covers only up to £120,000 of your funds. You can open either a sole or a joint account. While the account can be opened online, you can only manage it via mail or telephone. Interest is paid at maturity.
Close Brothers Savings Fixed Rate Bond – 4.31% 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. The account can be opened online, but you can also manage it via post or over the phone. Interest is paid at maturity.
Chetwood Bank Fixed Rate Savings Account – 4.3% 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.
Hampshire Trust Bank 1 Year Bond – 4.27% AER
This one-year fixed from Hampshire Trust is offering 4.27% AER, and you can start saving from just £1. You can deposit a maximum of £250,000 – but the FSCS only protects up to £120.000. You can make deposits for the first 14 days, and the account can be opened online. Interest is paid annually when your account matures.
Atom Bank 1 Year Fixed Saver – 4.25% AER
Open this saver with just £50, and save up to £100,000. You have one week from opening your account to fund any money in the savings account. Interest is paid annually on maturity, and this account can be opened online.
Cynergy Bank 1 Year Fixed Bond – 4.25% AER
Cynergy Bank is returning 4.25% 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.
Kent Reliance 1 Year Fixed Rate Bond – 4.25% AER
Kent Reliance’s fixed account lets you save between £1,000 and £1 million, but only £120,000 will be eligible for FSCS protection. You’re allowed to deposit all funds for 14 days from the day your account is opened, which can be done online. Interest will be paid at maturity.
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.
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.
