The best one-year fixed savings accounts - March 2023

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 over 4%. 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 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 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.  

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  

Al Rayan Bank 12 Month Fixed Term Deposit – 4.50%

This is a Sharia compliant account. It requires a minimum deposit of £5,000 and you can save up to £1,000,000. You can opt to receive your deposit quarterly or upon maturity. Open online or over the phone. 

SmartSave 1 Year FixedSaver – 4.43% 

The minimum account 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. 

OakNorth Bank 12 Month Fixed Term savings account – 4.42% 

The minimum amount you can deposit into this account is £1. You can open online or in app and save up to £500,000. 

Cynergy Bank 1 Year Fixed Rate Bond – 4.42% 

Deposit a minimum of £10,000 and up to £1,000,000. You can open it online and must make a deposit within 14 days from opening date. Withdrawals are only allowed under exceptional circumstances. 

Atom Bank 1 Year Fixed Saver - 4.30% AER

You can open the account with just £50, so it's a good option if you just want to lock away a small amount. You can save up to £100,000 and manage it in-app. 

Investec Bank 1 Year Fixed Saver – 4.15% AER 

Open an account online and deposit up to £250,000. You can make as many deposits as you want within the first seven days of opening the account. At the end of the term the repayment will be made to your linked curren account. 

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.   

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.