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 4.77% interest.
- The best one-year fixed deal is 4.77% AER with Vida Savings.
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.
According to the Moneyfacts UK Savings Trends Treasury Report, the average shelf-life of a fixed-rate bond has plummeted to 33 days, the biggest fall in more than four years.
So, it's worth weighing up which account suits your savings needs better.
One-year fixed savings accounts
SmartSave 1 Year Fixed Saver – 4.76% AER
To open this one-year fixed saver, you will need at least £10,000, and you can save up to £85,000. The funds must be deposited within 14 days of opening this fixed saver.
Interest is paid annually. The account can be opened online.
Close Brothers Savings 1 Year Fixed Rate Bond – 4.75% AER
This fixed saver requires a minimum deposit of £10,000 and you can save up to £2million. But only up to £85,000 is protected by the FSCS.
Any transfers can be made within 10 calendar days of opening this saver. The account can be opened online and managed online, post, or over the phone. Interest is paid at maturity.
GB Bank 1 Year Fixed Rate Bond – 4.75% AER
You can open this account with £1,000, and save up to £100,000. Keep in mind that only £85,000 of your money is eligible for FSCS protection. You have 21 calendar days from the date of opening your account to deposit funds.
The account can be opened online, and interest is paid monthly or annually.
İşbank Raisin UK 1 year Fixed Term Deposit - 4.74%
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 via Raisin.
Habib Bank Zurich plc HBZ Fixed Rate eDeposit Account – 4.65% AER
Habib Bank Zurich is a Swiss multinational bank offering a fixed rate saver of 4.65% AER. You can start saving from £5,000 and go up to £1 million.
Interest is paid on maturity, and the account can be opened online and managed over the phone or by post.
LHV Bank (via Raisin UK) 1 Year Fixed Term Deposit – 4.65% AER
With this account, you can earn 4.65% if you sign up for it via Raisin. You can save between £1,000 and £85,000.
The account can be opened online, and interest is paid at maturity.
MBNA Fixed Saver 1 Year – 4.65% AER
You can earn 4.65% with this fixed saver. You can open the account with an initial deposit of £1,000 and have 14 days to make payments.
The account can be opened online and you can also manage it over the phone.
Tandem Bank 1 Year Fixed Saver – 4.65% 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.
Zopa 1 Year Fixed Term Savings – 4.65% AER
This fixed saver requires a minimum deposit of £1,000 and you can save up to £250,000, with FSCS protection on up to £85,000. You can top up your savings as many times for 14 days before your term starts.
The account can be opened and managed online. Interest is paid at maturity.
Charter Savings Bank 1 Year Fixed Rate Bond – 4.62% AER
Charter Savings Bank is returning 4.62% AER when you fix your money for a year. The difference with this account is, interest is paid monthly. You can save up to £1million – but only £85,000 is protected by the FSCS.
The account requires a minimum deposit of £5,000. You can open and manage your savings account online.
Kent Reliance 1 Year Fixed - 4.61% AER
You'll need a minimum of £1,000 to open this account, and you can save up to £1million. But 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.
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.
