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 SmartSave.
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
SmartSave 1 Year Fixed Rate Saver - 5.17% AER
This market-leading 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.
Allica Bank 12-Month Fixed Term Savings Account- 5.16% AER
Earn 5.16% 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.
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.
Hodge Bank 1 Year Fixed Rate Bond - 5.16% 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.
OakNorth Bank Fixed Term Savings Account - 5.11% AER
OakNorth Bank is offering a 5.11% savings rate on its 12-month fixed saver. You can deposit from as low as £1 and save up to £500,000. However, keep in mind that the FSCS will only protect £85,000 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.
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.
Zenith Bank (UK) Ltd 1 Year Fixed Term Deposit - 5.1% AER
This one-year fixed from Zenith Bank is offering 5.1% 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.
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.
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.
Habib Bank Zurich HBZ Fixed Rate eDeposit - 5.05% AER
This Shariah-compliant bank is offering a one-year fixed saver with £5,000 and save up to £1million. 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.
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.
