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.
With the Bank of England holding interest rates in June, many top-paying savings accounts could lower their rates.
But if you're happy to fix your savings for a year, you can still earn up to 4.55% interest, beating inflation. We list the best accounts on the market now.
One-year fixed savings accounts
Castle Trust Bank Fixed Rate e-Saver – 4.51% AER
With this Castle Trust one-year fixed saver, you can start saving from £1,000 and save a maximum amount of £500,000. However, it's worth noting that £85,000 of your amount will be protected under the FSCS.
You can open the account online, and interest is paid annually on maturity.
Vanquis Bank 1 Year Fixed Bond - 4.51% 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.
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.
Family Building Society 1 Year Fixed Rate Bond – 4.46% AER
Both new and existing customers can save between £10,000 and £250,000 in this fixed bond. However, only £85,000 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.
Close Brothers Savings Fixed Rate Bond – 4.45% 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.
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.
GB Bank 1 Year Fixed Rate Bond – 4.4% AER
Earn 4.4% 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.
Investec Bank 1-Year Fixed Rate Saver - 4.4% AER
This saver requires a minimum deposit of £5,000 and you can save up to £250,000.
You must make all deposits within seven days of opening the saver. You can open the account online, and interest is paid annually on maturity.
Tandem Bank 1 Year Fixed Saver – 4.38% 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.
Hodge Bank 1 Year Fixed Rate Bond – 4.37% AER
With Hodge Bank, you can fund anywhere from £1,000 to £1 million in the account, but only £85,000 is protected by the FSCS.
You have up to 14 working days to transfer any funds into the account. Interest is paid on maturity and you can open the saver online.
Ford Money Fixed Saver 1 Year - 4.35% AER
This easy-access account pays 4.35% interest on its fixed saver. You can open this account with a £500 deposit and save up to £2 million, while up to £85,000 of your savings will be protected under the FSCS.
Interest is paid at maturity. The account can be opened online.
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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