Daniel Hilton
Disclaimer
All the financial institutions we feature are protected by the Financial Services Compensation Scheme (FSCS), meaning up to £85,000 of your savings are protected should a bank go bust.
Fixed savings accounts, also known as fixed-rate bonds, tend to offer better rates than easy-access savings accounts in return for locking away cash. 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.
However, since the Bank of England cut interest rates in February, many savings rates are being lowered to reflect the smaller base rate.
Despite the drop in interest rates since the heady heights of 2023, if you're happy to fix your savings for a year, you can still earn up to 4.65% interest.
- The best one-year fixed deal is 4.65% with Castle Community Bank.
One-year fixed savings accounts
Cynergy Bank 1 Year Fixed Bond - 4.55% AER
Cynergy Bank is returning 4.55% AER and you can start saving with a minimum £1,000. You have a 14-day window to make any deposits. Save up to £1million. This saver can be opened and managed online.
GB Bank 1 Year Fixed Rate Bond – 4.55% AER
Earn 4.55% 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.
Tandem Bank 1 Year Fixed Saver – 4.55% 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.
Conister Bank 1 Year Fixed Rate – 4.52% AER
You can open this account by depositing between £5,000 and £100,000, but note that only £85,000 of your amount will be protected under the FSCS, not the entire sum.
The account can be opened online and interest is paid annually.
Ziraat Bank Raisin UK - 1 Year Fixed Term Deposit – 4.50% AER
Earn 4.50% with this one-year fixed from Ziraat Bank – but you need to sign up via Raisin to get this rate. You can save between £1,000 and £85,000.
Interest is paid on maturity. The account can be opened online.
Close Brothers Savings 1 Year Fixed Rate Bond - 4.47% 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.
Hodge Bank 1 Year Fixed Rate Bond – 4.47% 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.
UBL UK 1 Year Fixed Term Deposit – 4.46% AER
This one-year fixed savings account pays 4.46% interest, and you have to stash between £2,000 and £1 million to qualify for the rate.
You have ten calendar days to fund your account in order to secure the rate. The account can be opened and managed online, via post, or in branch. Interest can be paid monthly or annually.
Gatehouse Bank 1 Year Fixed Saver – 4.45% AER
Open this account with £1,000 and save up to £1 million. But note, that this is a Sharia-compliant bank, so you earn an expected profit rate.
You can open the saver online, and the expected profit is paid monthly or annually at maturity.
Birmingham Bank 1 Year Fixed Rate Bond – 4.42% AER
Birmingham Bank is currently offering 4.42% on its fixed saver. You can save anywhere between £5,000 and £250,000. However, you’re only eligible for FSCS protection for up to £85,000 of your deposit.
Once your account is opened, you have a limited period of 14 calendar days to make deposits. The account can only be opened online. Interest is paid at maturity.
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.
