The best one-year fixed savings accounts – earn up to 5.21%

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 fixed period of time.

Currently, if you lock in your savings for a year, you can earn up to 5.21%. We list the best accounts on the market below.

We round up the best savings rates in a separate guide.

• The best one-year fixed rate is 5.21% AER from AlRayan Bank.

One-year fixed savings accounts

Best 1 year fixed rate

AlRayan Bank 12 Month Fixed Term Deposit – 5.15% AER

This is currently the highest rate on the market.

Earn an expected profit rate of 5.15% with this one-year fixed deposit from Sharia-compliant AlRayan Bank. There is a minimum deposit requirement of £10,000, and you can save up to £1 million. Note that only £120,000 will be eligible for FSCS protection.

The expected profit will be paid on maturity, and you can open the account online.

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OakNorth Bank Fixed Term Savings Account – 5.19% AER

OakNorth Bank is offering a 5.19% rate on its 12-month fixed saver. You can deposit just £1 and save up to £500,000. However, keep in mind that the FSCS will only protect £120,000 of your deposit money. You can open the account online or on the OakNorth mobile app. Interest will be paid at maturity.

Castle Trust Bank Fixed Rate e-Saver – 5.19% AER

Castle Trust Bank is currently paying 5.19% on your money. You can start saving from £1,000 and save a maximum amount of £500,000 – only up to £120,000 of your amount will be protected under the FSCS protection scheme. You can open the account online, and interest is paid annually on maturity.

Vida Savings 1 Year Fixed Rate Bond – 5.15% AER

Vida is offering a 5.15% fixed rate on its savings account. The minimum deposit requirement is £1,000, and you can make unlimited deposits of up to £500,000 in the first 21 days. However, only £120,000 will be eligible for FSCS protection. The account can be opened online. Interest is paid at maturity.

GB Bank 1 Year Fixed Rate Bond – 5.14% AER

Earn 5.14% 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.

Chetwood Bank Fixed Rate Savings Account – 5.13% 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.

Close Brothers Savings Fixed Rate Bond – 5.12% AER

With Close Brothers Savings, you can save between £10,000 and £2 million per account, but note that only £120,000 of the sum will be protected under the FSCS. The account can be opened online, but you can also manage it via post or over the phone. Interest is paid at maturity.

Penrith BS 1 Year Fixed Rate E-Bond – 5.12% AER

This account from Penrith BS can be opened by saving anywhere between £5,000 and £120,000. You will have 14 days to fund the account. Interest is paid at maturity, and the account can be opened online.

Union Bank of India (UK) Ltd Fixed Rate Deposit – 5.12% AER

This one-year fixed saver by Union Bank of India (UK) is offering 5.12%. To open this account, you can start saving with £1,000 and deposit a maximum of £1 million. Interest is paid annually when your account matures. You can open the saver in branch or by post.

Investec Bank 1-Year Fixed Rate Saver – 5.1% AER

This one-year fixed saver requires a minimum deposit of £5,000, and you can save up to £250,000. However, only £120,000 will be protected under the FSCS. You must make all deposits within seven days of opening the savings account. You can open the account online, and interest is paid annually on maturity.

Recognise Bank 1 Year Fixed Rate Account – 5.1% AER

This Recognise Bank fixed saver pays 5.1% interest on its fixed saver. You can deposit between £1,000 and £250,000, however, the FSCS will only protect £120,000 of that money. The account can be opened online. Interest is paid at maturity.

MBNA Fixed Saver 1 Year – 5.1% AER

You will need to pay a minimum deposit of £1,000 to open this account, and the most you can save is £750,000. However, it's worth keeping in mind that only up to £120,000 will be protected by the FSCS. You have to fund the account within the first 14 days. Interest is paid on maturity. The account can be opened online and managed by telephone.

Is a fixed savings account right 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.