Disclaimer
All the banks we mention are protected by the Financial Services Compensation Scheme (FSCS), meaning up to £85,000 of your savings are protected should a bank go bust. This article may contain affiliate links – when you purchase through links on our site, we may earn a commission*
If you’re looking for the best savings account and are happy to fix your savings for a year, you can now earn up to 5.21% interest.Over 600 fixed-rate bonds are offering inflation-busting savings for you to choose from.
- The best one-year fixed deal is 5.21% with Habib Bank Zurich.
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 on short-term savings.
But as it stands, it's a close margin with an easy-access saver also offering returns of up to 5.2%. So, it's worth weighing up which account suits your savings needs better.
One-year fixed savings accounts
Habib Bank Zurich HBZ Fixed Rate - 5.21% AER
This Shariah-compliant bank is offering a market-leading one-year fixed saver.
You can deposit a minimum of £5,000 and save up to £1million. But note that only up to £85,000 of your deposit is protected by the FSCS.
Interest is calculated daily and paid annually. This account can be opened online.
Al Rayan Bank 1 Year Fixed Saver- 5.2%
This Sharia-compliant bank is offering an expected profit rate of 5.2% on savings. You must deposit at least £5,000 and you can save up to £1million.
Profit can be taken quarterly or reinvested. You can open this account online or by phone.
Close Brothers 1 Year Fixed Rate Bond - 5.16% AER
This one-year fixed saver requires a minimum deposit of £10,000 and you can save up to £2million. But note that only £85,000 of your deposit will be protected under the FSCS.
You can open this saver online. Interest is paid into your account annually.
Tandem Bank 1 Year Fixed Saver - 5.12% AER
Tandem Bank’s 1 Year Fixed Saver pays 5.12% interest. You can open it with just £1 and go up to £2.5million. However, only £85,000 of your amount will be protected under the FSCS.
You can add money to this account in the first 14 calendar days from opening the account.
The account can be opened and managed online.
SmartSave 1 Year Fixed Rate Saver- 5.11% AER
This one-year fixed saver requires a minimum deposit of £10,000 and you can save up to £85,000.
All deposits must be made within the first 14 days of opening the account and it can be opened online.Interest is paid at maturity.
Charter Savings Bank 1 Year Fixed Rate Bond - 5.09% AER
You will need to pay a minimum deposit of £5,000 to open this account. The maximum amount is £1million. Keep in mind that only £85,000 of your money will be protected by the FSCS.
Interest is paid monthly. You can open and manage your savings account online.
Stream Bank 1 Year Fixed Account - 5.05% AER
Stream Bank's one-year fixed saver can be opened with a minimum of £1,000 and you can save up to £100,000.
Your savings will be transferred into a Maturity Saver Account after one year if you don't move your funds before the term ends.
The account can be opened online. Interest is paid at maturity.
Zenith Bank (UK) Ltd 1 Year Fixed Term Deposit - 5.05% AER
This one-year fixed from Zenith Bank is offering 5.05% AER and you can start saving from just £1,000. You can deposit a maximum of £2million, but only £85,000 will be protected under the FSCS scheme.
You can make deposits within the first 14 days, and the account can be opened online. You can manage your account over the phone, via email or by post.
Interest is paid annually when your account matures.
Atom Bank 1 Year Fixed Saver - 5.05% AER
This one-year fixed saver can be opened with just £50 and you can save up to £100,000. But only £85,000 of your deposit money will be eligible for FSCS protection.
Your deposit window is a week from the day you open the account. Interest will be paid at maturity. You can open and manage your account on the Atom app.
Hodge Bank 1 Year Fixed Rate Bond - 5.05% AER
Open the saver with a minimum of £1,000 and save up to £1million. But only £85,000 will be protected by the FSCS.
You have 14 working days to transfer your funds into the account. You can open the saver online and interest is paid annually when your account matures.
MBNA Fixed Saver 1 Year - 5.05% AER
To open this one-year fixed saver you need a minimum deposit of at least £1,000. Though you can save up to £750,000, only up to £85,000 of your amount will be eligible for FSCS protection.
You can apply for this saver online and manage it over the phone. You can make any deposits within 14 calendar days of opening your account. Interest is paid at maturity.
Is a fixed savings account for me?
If you have a lump sum sitting in an account that offers a lower interest rate, you could get more for your money by moving it to a fixed-term account. The interest rates are 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.
