The best one-year fixed savings accounts – earn up to 4.91%
One-year fixed savings accounts are offering inflation-beating rates of up to 4.91%. 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 July meeting, fewer fixed-term bonds can now beat inflation.
If you lock in your savings for a year, you can earn up to 4.91% 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 4.91% AER with Habib Bank AG Zurich.
One-year fixed savings accounts
OakNorth Bank Fixed Term Savings Account – 4.86% AER
OakNorth Bank is offering a 4.86% rate on its 12-month fixed saver. You can deposit just £1 and save up to £500,000. However, keep in mind that the FSCS will only protect £120,000 of your deposit money. The account needs to be funded with payments within the first 14 days. You can open the account online or on the OakNorth mobile app. Interest will be paid at maturity.
Recognise Bank 1 Year Fixed Rate Account – 4.86% AER
This Recognise Bank fixed saver pays 4.86% interest on its fixed saver. You can deposit between £1,000 and £250,000, however, the FSCS will only protect £120,000 of that money. The account can be opened online. Interest is paid at maturity.
MBNA Fixed Saver 1 Year – 4.85% AER
You will need to pay a minimum deposit of £1,000 to open this account, and the most you can save is £750,000. However, it's worth keeping in mind that only up to £120,000 will be protected by the FSCS. You have to fund the account within the first 14 days. Interest is paid on maturity. The account can be opened online and managed by telephone.
Close Brothers Savings Fixed Rate Bond – 4.8% 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.
Vanquis Bank 1 Year Fixed Bond – 4.78% AER
Open this fixed saver with £1,000 and save up to £250,000. Keep in mind that only £120,000 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.
Family Building Society 1 Year Fixed Rate Bond – 4.76% AER
New and existing customers can save between £10,000 and £250,000 in this fixed bond. However, only £120,000 of your money is eligible for FSCS protection. Additional deposits are allowed for 15 calendar days after you open the account. The account can be opened online, and you can also manage it by phone, post or at a branch. Interest is paid annually on 30 June and on maturity.
Union Bank of India (UK) Ltd Fixed Rate Deposit – 4.76% AER
This one year fixed saver by Union Bank of India (UK) is offering 4.76%. 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.
NS&I Guaranteed Growth Bonds – 4.72% AER
National Savings & Investments is offering 4.72% on its one-year British Savings Bond, known as a Guaranteed Growth Bond. You will need to deposit between £500 and £1 million, and it’s worth noting that the FSCS will only protect up to £120,000 of this sum. The account can be opened online, and interest is paid at maturity.
Charter Savings Bank 1 Year Fixed Rate Bond – 4.71% AER
Charter Savings Bank's fixed rate bond lets you save between £5,000 and £1 million. Only £120,000 of that sum will be eligible for FSCS protection. The deposit can be made within 14 days of opening the account. Interest is paid annually, and the account can be opened online.
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.
