The best one-year fixed savings accounts - June 2023

If you’re looking for the best savings account and can afford to lock your cash away for a year, you can now earn over 5% interest with a fixed account. Not bad for a year’s return. 

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 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 there’s still a chance for you to gain some interest with little effort and relatively no risk if you know you won’t be needing the money in the next year.  

Although, keep in mind, as interest rates go up, offers on cash savings may too in the coming weeks, so you’ll have to decide if it is worth waiting before fixing your savings in hope that better rates will come along.

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  

National Bank of Egypt (UK) 1 year Fixed Saver (via Raisin) - 5.25% AER

National Bank of Egypt is offering a market-leading rate of 5.25% for their one-year fixed saver. The minimum deposit required to open the account is £10,000 and you can save up to £85,000. You can open and manage this account online via Raisin. 

My Community Bank 1 Year Fixed Saver - 5.20% AER

You must deposit at least £1,000 to open this top 1 year fixed savings account, and you can save up to £85,000. Open and manage this account online. 

Shawbrook 1 Year Fixed Saver - 5.16% AER

Shawbrook is offering a 5.06% return on savings if you fix for one year. You can open this account with £1,000 and you can save up to £2,000,000. Interest is calculated daily and paid annually. 

SmartSave 1 Year Fixed Saver - 5.16% AER

The minimum amount you can deposit is £10,000 and the maximum is £85,000. Interest on this account accrues daily and is paid gross. It will be added to your savings balance the day after your fixed term ends. You must deposit funds within 14 days of opening the account.  You can open and manage the account online.

Tandem 1 Year Fixed Saver - 5.15% AER

Open this Tandem 1 year fixed account with just £1, and you can save up to £250,000. Interest is paid annually and you can open and manage this account online. 

United Trust Bank 1 Year Fixed Saver - 5.12%

This one-year fixed saver lets you start saving from £5,000 and you can save up to £1million. You can open and manage this saver online and interest is paid on maturity when the one-year fixed term ends. 

Atom Bank 1 Year Fixed Saver - 5.1% AER

Atom Bank is one of a few banks offering a top return of more than 5%, and you can start saving with just £50. The maximum you can deposit into the account is £100,000 and you can open and manage this saver on the Atom Bank app. 

Charter Savings Bank 1 Year Fixed Saver - 5.1%

Open this saver with a £5,000 minimum deposit and save up to £1million in the account. You can opt for interest to be paid to you monthly or annually and you can open and manage this account online. 

OakNorth Bank 1 Year Fixed Saver - 5.07% AER

You can open this account with just £1 and the maximum deposit is £500,000. You can fund your account with multiple deposit payments within 14 calendar days from when your account opens. You can open and manage this account online or via the OakNorth Bank app.

Investec Bank 1 Year Fixed Saver - 5.06% AER

This one-year fixed saver is also giving a top return of 5%. You need to deposit a minimum of £1,000 to open the account and you can deposit a maximum of £250,000. Open and manage this account online.

Is a fixed savings account right for me?  

If you need to access your cash at any given 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.   

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 - and now that rates are up, you may as well earn something on your cash holdings where you can. 

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.