The best one-year fixed savings accounts – earn up to 4.45%
One-year fixed savings accounts are offering inflation-beating rates of up to 4.45% despite the Bank of England's rate cut. 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 cutting interest rates to 3.75%, fewer fixed-term bonds can now beat inflation.
If you're looking to lock in your savings for a year, you can still earn up to 4.45% 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 4.45% AER with Union Bank of India (UK) Ltd..
One-year fixed savings accounts
Cynergy Bank 1 Year Fixed Bond – 4.28% AER
Cynergy Bank is returning 4.28% AER, and you can start saving with a minimum of £1,000. You have a 14-day window to make any deposits. You can save up to £1 million, and the account can be opened and managed online.
Chetwood Bank Fixed Rate Savings Account – 4.26% 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.
Penrith BS 1 Year Fixed Rate E-Bond – 4.25% 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.
Aldermore Raisin UK 1 Year Fixed Term Deposit – 4.21% 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.
UBL UK 1 Year Fixed Term Deposit – 4.21% AER
This one-year fixed savings account pays 4.21% 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.
Afin Bank 1-Year Fixed Term – 4.2% AER
This digital bank is offering a 4.2% fixed rate on its savings account. The minimum deposit requirement is £1,000, and you can save up to £200,000 (but only £120,000 will be FSCS-protected). The account can be opened online. Interest is paid at maturity.
Gatehouse Bank 1 Year Fixed Term Woodland Saver – 4.2% 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. Plus, only £120,000 will be FSCS-protected. You can open the saver online, and the expected profit is paid at maturity.
Vanquis Bank 1 Year Fixed Bond – 4.2% AER
Open this fixed saver with £1,000 and save up to £250,000. Keep in mind that only £120,000 will be protected by the FSCS. The first deposit must be made within 30 days of submitting your application, and any further funds within five working days of the initial payment. This account can be opened and managed online. Interest is paid at maturity.
MBNA Fixed Saver 1 Year – 4.17% AER
You will need to pay a minimum deposit of £1,000 to open this account. The maximum amount is £750,000. Only a maximum of £120,000 will be protected by the FSCS. You can add more money into the account for 14days after it is opened, and interest is paid on maturity. You can open the account online and manage it by telephone.
GB Bank 1 Year Fixed Rate Bond – 4.15% AER
Earn 4.15% 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.
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.
-
Why you fear money – and how to fix it: MoneyWeek TalksPodcast MoneyWeek's digital editor, Kalpana Fitzpatrick, speaks to financial psychotherapist Vicky Reynal about how to change your money mindset for the better.
-
How cancelling unused direct debits could boost your pension by £37,000A new year refresh of your spending could save you money and help boost your pension pot.
-
Brits leave £31.6 billion in savings accounts paying 1% interest or less – do you need to switch?Eight million Brits hold money in savings accounts that pay 1% interest or less, meaning the value of their cash is being eroded by inflation.
-
Buying vs renting: is is better to own or rent your home?The higher mortgage rates of recent years have actually made renting comparatively cheaper, analysis suggests. But there are hidden costs to long term renting.
-
Hargreaves Lansdown launches first cash ISA – how does it compare?Hargreaves Lansdown is offering an own brand cash ISA for the first time with their new easy-access account. How does the interest rate compare to other products?
-
Is Britain heading for a big debt crisis?Opinion Things are not yet as bad as some reports have claimed. But they sure aren’t rosy either, says Julian Jessop
-
‘My NS&I one-year British Savings Bond is maturing – what should I do with my savings?Thousands of savers will see their fixed-rate savings accounts mature next month. We consider whether you should stick with NS&I or move to a competitor
-
How to pay in a chequeReceiving or writing a cheque has become much less common in recent years as instant bank transfers have grown in popularity. Amid widespread bank branch closures, we explain what to do if you get a cheque, and how you can pay one into your bank account.
-
‘Current account coasters’ are leaving billions of pounds languishing in low interest accountsThe average saver with £10,000 or more in their zero interest current account is missing out on over £1,500 in potential interest payments, new research has revealed.
-
Best inflation-beating savings accounts to make your money work hardWe explore the savings accounts that can best protect your money from inflation
