The best one-year fixed savings accounts – earn up to 4.7%
One-year fixed savings accounts are offering inflation-beating rates of up to 4.7%. We've rounded up the best deals available on the market now.
All the financial institutions we feature are protected by the Financial Services Compensation Scheme (FSCS), meaning up to £120,000 of your savings are protected should a bank go bust.
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.
However, with the Bank of England holding interest rates at 3.75% in its March meeting, only 825 fixed-term bonds can now beat inflation.
If you lock in your savings for a year, you can earn up to 4.7% interest. 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 4.7% with Castle Community Bank.
One-year fixed savings accounts
MBNA Fixed Saver 1 Year – 4.66% 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.
Close Brothers Savings Fixed Rate Bond – 4.65% 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.
The Co-operative Bank 1 Year Fixed Term Deposit – 4.62% AER
This saver provides a fixed rate of 4.62% AER. You can open the account with a minimum of £1,000 and a maximum of £1 million. Further additions are allowed for 14 days after you open the account. Interest is paid on maturity, and the account can be opened online.
AlRayan Bank Meteor Savings 1 Year Fixed Term Deposit – 4.6% AER
You can open this fixed saver through Meteor Savings, a savings provider. The savings account comes with a 0.03% boost, making your effective rate 4.6% AER. You can save between £1,000 and £1 million. However, only £120,000 will be eligible for FSCS protection. Interest is paid at maturity.
Birmingham Bank 1 Year Fixed Rate Bond – 4.6% AER
Birmingham Bank is currently offering 4.6% 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 £120,000 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.
Chetwood Bank Fixed Rate Savings Account – 4.55% 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.
OakNorth Bank Fixed Term Savings Account – 4.53% AER
OakNorth Bank is offering a 4.53% 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. The account needs to be funded with payments within the first 14 days. You can open the account online or on the OakNorth mobile app. Interest will be paid at maturity.
Ziraat Bank Raisin UK – 1 Year Fixed Term Deposit – 4.53% AER
Earn 4.53% 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 £120,000. Interest is paid at maturity. The account can be opened online.
Habib Bank Zurich plc HBZ Fixed Rate e-Deposit Account – 4.51% AER
Switzerland-based Habib Bank AG Zurich is paying 4.51% provided you deposit between £5,000 and £1 million – but the FSCS scheme covers only up to £120,000 of your funds. You can open either a sole or a joint account. While the account can be opened online, you can only manage it via mail or telephone. Interest is paid at maturity.
Kent Reliance 1 Year Fixed Rate Bond – 4.51% AER
Kent Reliance’s fixed account lets you save between £1,000 and £1 million, but only £120,000 will be eligible for FSCS protection. You’re allowed to deposit all funds for 14 days from the day your account is opened, which can be done online. Interest will be paid at maturity.
Aldermore Raisin UK 1 Year Fixed Term Deposit – 4.47% AER
With this Aldermore fixed saver, you can start saving from £5,000 and save a maximum amount of £120,000. You will only earn this rate if you open the account online via Raisin UK. Interest is paid annually on maturity.
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.
