The best one-year fixed savings accounts – November 2022
Earn almost 5% on one-year fixed savings accounts.
If you’re looking for the best savings account and only want to store your cash savings away for the short term, then a one-year fixed-rate account can now earn you almost 5%. Not bad for a year’s return.
These accounts, also known as fixed-rate bonds, offer better rates than easy-access savings accounts, which are convenient for anyone hoping to gain some interest while still being able to withdraw money at their convenience.
While it’s worth keeping in mind that the rates for these accounts do not beat inflation which is just over 10%, there’s still a chance for you to gain some interest with little effort and relatively risk-free if you know you won’t be needing the money in the next year.
These are the best one-year fixed-rate deals on the market at the moment. MoneyWeek uses data from Defaqto to regularly update this article. All the banks we mention are protected by the Financial Services Compensation Scheme, meaning up to £85,000 of your savings are protected should a bank go bust.
The best one-year fixed savings accounts
FirstSave 1 Year Fixed Bond – 4.5%
This online account has a minimum opening deposit of £1,000. the money cannot be withdrawn before the end of the term. If you deposit more than £5,000, you can choose receive your interest monthly.
SmartSave 1 Year Fixed Saver – 4.37%
You must open this online account with a minimum deposit of £10,000, but £347 isn't a bad return for a 12 month period.
Investec Bank 1 Year Fixed Saver – 4.36%
You need a minimum £5,000 deposit to open this account. The interest is paid when the account matures. You cannot withdraw any cash until the fixed period ends.
Atom Bank 1 Year Fixed Saver - 4.35%
You can open the account with just £50 - so it;s a good option if you just want to lock away a small amount.
Interest on this account is calculated daily on the full closing balance in the account and will be paid in full at the end of the term. You need a minimum balance of £1,000 and can hold up to £85,000.
With Aldermore’s account you can choose to get interest paid monthly or at maturity. You can open and manage your account online with a minimum deposit of £1,000.
Is a fixed savings account right for me?
If you need to access your cash at any moment, fixed accounts are not the ones for you. You cannot take money out of fixed accounts until the end of the term – if you do, you will lose interest and have to pay a penalty.
However if you have a lump sum sitting in an account which offers a lower interest rate, you could get more for your money by moving it to a fixed-term account. The interest rate is almost always guaranteed (except for Shariah-compliant accounts) so you know exactly what you’re going to get.
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.