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 happy to lock some cash away for a year, you can now earn up to 5.17% interest with a fixed account- not bad for a year’s return.
- The best one-year fixed deal is 5.17% with Allica Bank.
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 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
Allica Bank 12-Month Fixed Term Savings Account- 5.17% AER
Earn 5.17% with this saver and open this account with a minimum £10,000 deposit. You can save up to £250,000.
The account can be opened online and you have up to 14 days to deposit your funds. Interest is paid at maturity after one year.
SmartSave 1 Year Fixed Rate Saver- 5.17% 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.
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.
Atom Bank 1 Year Fixed Saver - 5.15% 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.
Zenith Bank (UK) Ltd 1 Year Fixed Term Deposit - 5.15% AER
This one-year fixed from Zenith Bank is offering 5.15% 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.
QIB (UK) Raisin UK 1 Year Fixed Term Deposit - 5.15% AER
This one-year fixed from QIB Bank via Raisin is offering 5.15% AER. You can start saving from £1,000 and go up to £85,000.
The expected profit will be paid on maturity and this account can be opened online via the Raisin website.
Emirates NBD HL Active Savings 1 Year Fixed Term Deposit - 5.1% AER
To open this saver you need a minimum deposit of just £1 and you can save up to £1million. However, only up to £85,000 of your amount will be eligible for FSCS protection.
This account is offered on Hargreaves Lansdown's (HL) Active Savings platform. This means that you will first need to open an active savings account with HL and then you can pick your chosen saver. Read more on how the HL savings platform works.
Interest is paid at maturity and you can open the account online.
Hodge Bank 1 Year Fixed Rate Bond - 5.1% 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.
Beehive Money One Year Bond Issue - 5.1% AER
Beehive Money is owned by Nottingham Building Society.
Beehive’s one-year fixed saver can be opened with a minimum of £1,500 and you can save up to £250,000.
But note that only £85,000 of your amount will be eligible under the FSCS protection scheme.
The account can be opened online. Interest is paid at maturity.
Al Rayan Bank 1 Year Fixed Saver - 5.1%
This Sharia-compliant bank is offering an expected profit rate of 5.1% on your 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.
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 rate is almost always guaranteed (except for Shariah-compliant accounts) so you know exactly what you’re going to get. Also, now that rates are higher, you may as well earn something on your cash holdings if you can.
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.
