Best 1 Year Fixed Rate Bonds
We found 170 PRODUCTS in total, of which 43 are EASY TO OPEN
Habib Bank Zurich plc HBZ Fixed Rate e-Deposit Account
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
Habib Bank Zurich plc HBZ Sirat e-Deposit Account
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
Kent Reliance 1 Year Fixed Rate Bond - Issue 26
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
3.65%
Fixed
1 Year Bond
Anniversary
Online
Online,Telephone
Close Brothers Savings Fixed Rate Bond
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
Hampshire Trust Bank 1 Year Online Fixed Saver (Issue 80)
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
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OakNorth Bank Fixed Term Savings Account
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
BACB Raisin UK - 1 Year Fixed Term Deposit
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
Trusted by moneyfactscompare.co.uk, Kellands are chartered financial planners that specialise in quality financial planning and investment advice. Learn more about speaking to Kellands for a one hour consultation free of charge. Min. £100k in savings & investments.
AlRayan Bank Meteor Savings - 1 Year Fixed Term Deposit
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
LHV Bank 1 Year Fixed Rate Bond
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
RCI Bank UK 1 Year Fixed Term Savings Account
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
Close Brothers Savings HL Active Savings - 1 Year Fixed Term Deposit
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
Perenna Raisin UK - 1 Year Fixed Term Deposit
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
Ziraat Bank Raisin UK - 1 Year Fixed Term Deposit
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
Kent Reliance HL Active Savings - 1 Year Fixed Term Deposit
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
National Bank of Egypt (UK) Limited Raisin UK - 1 Year Fixed Term Deposit
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
Bank of London and The Middle East 1 Year Premier Deposit Account
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
Eligible deposits with UK institutions are protected by the FSCS up to £120,000 per person per institution.
Who owns whom?
Find out which banks and savings account providers operate under which banking license with our who owns whom guide, helping savers work out to what degree their savings are protected by the FSCS.
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A one-year fixed rate savings account, also known as a one-year fixed rate bond, pays a guaranteed rate of interest on a lump sum of money for 12 months. This type of savings account can offer relatively competitive returns but, in exchange, you won’t normally be able to withdraw from your savings during the one-year term.
Because the interest rate won’t change, one-year bonds can provide savers with a predictable and guaranteed return on their money. The interest rate on an existing one-year bond won’t be affected by any changes in the market (such as any base rate cuts), so there’s no risk that it will fall and provide you with lower-than-expected returns.
One-year bonds are suitable if you have a lump sum to deposit, as you may not be able to add to your account after opening. Moreover, as you typically can’t access your money until the end of the term, it’s crucial to plan ahead and think carefully about how much you deposit in one of these accounts.
It’s important not to get one-year fixed bonds confused with investment bonds. While your money is at risk in an investment bond, money in a fixed rate bond (or savings account) earns a guaranteed rate of interest and is protected under the Financial Services Compensation Scheme (FSCS).
After applying for a one-year bond, you will need to add money to the account. Providers usually set minimum deposit requirements which often range from £1,000 to £10,000, but individual accounts may ask for a smaller or larger amount.
In many cases, you will only be allowed to make a single deposit into a one-year bond (when opening the account). However, some providers may allow you to add to your savings pot for a limited period afterwards, which is usually just a few days.
The bank, building society or other savings provider will then pay the advertised interest rate on this lump sum for the full length of the term. Some accounts may have a fixed term of exactly one year (or 12 months) from when you opened it, but other accounts may specify a date when the fixed term ends or matures. This means the fixed term could be slightly longer or shorter than one year.
Most fixed rate one-year bonds won’t allow any withdrawals during the term.
When the one-year term ends, known as reaching maturity, you can access the initial sum deposited plus the interest it earned.
It depends on the provider, as some only allow you to make one deposit into a one-year bond at the point of opening while others may allow further deposits for a limited period, such as 10 days, 28 days or while the issue remains open.
Click “product specification” next to an account on our chart to see if additional contributions are permitted after the initial deposit.
Whether you can choose the way interest is paid depends on the provider. Some providers may be able to pay interest monthly, on anniversary or on maturity, for example, depending on your preferences, while other providers will only pay interest in one way.
You can see how different accounts pay interest, and whether there is a choice, by viewing our chart above.
Bear in mind that, if you have interest paid into a different account each month, for example, you will earn less interest overall as you won’t receive the benefits of compounding (when interest is paid on top of the interest already earned).
At the start of March 2026, the best one-year fixed rates sit above 4.20% AER. Even though several providers have been lowering the returns on their one-year bonds since the start of the year, the leading rates have remained relatively resilient.
However, the top accounts aren’t guaranteed to stick around for long, particularly as the Bank of England is expected to lower the base rate at least once in 2026, which may prompt savings providers to follow suit and lower the interest rates on their accounts.
Because providers can amend rates and products relatively quickly, savers shouldn’t delay if they see a competitive account that’s right for them. The accounts and rates available may have changed since writing so, for the current list of the best one-year fixed rate savings accounts, see our regularly-updated chart above.
It’s important to note that, even though the interest rate will be a key factor in choosing an account, there are various products on the market that will appeal to different savers. In addition to the interest rate, it’s also worth considering the following to help you find the best one-year bond for you:
There’s no particular provider or one-year bond that is the “best” for over-60s. The best one-year bonds for pensioners and older savers will depend on their saving goals, individual situations and own preferences.
As explained above, even though accounts that pay the highest interest will typically be the most appealing, it’s important to consider other features of the account too.
For example, while a one-year bond with a minimum deposit requirement of £10,000 may be suitable for someone wanting to lock away a large sum for this period, another saver wanting to put £5,000 into a one-year bond would need to find a different provider with a lower deposit requirement.
Similarly, the ways of opening and managing an account can influence which option is best for you. For example, someone who wants to open their account in person may favour an account from a provider with high street branches near their home address, whereas someone who is comfortable managing their savings online may consider digital-only providers.
Meanwhile, if a saver wants the interest earned on a one-year bond to be paid out monthly into their bank account to supplement their retirement income, they will need to look for a provider that offers this as an option. Not all one-year bonds pay interest monthly (or allow you to have the returns paid into a different account), so, for those who want this feature, the highest-paying account may not be the best choice if it only pays interest on maturity, for example.
Because one-year bonds allow you to earn a fixed sum of interest for 12 months, they can be appealing to those who have retired, as well as those who are still working and yet to retire.
Older savers may particularly like the security offered by a one-year bond (and other fixed accounts) as, unlike investments, they provide a guaranteed return on your money without putting it at risk.
This means savers don’t need to worry about stock market volatility or the possibility of falling interest rates affecting the return on their savings, which can help them plan and budget for the future.
The returns you can expect to receive on a one-year bond will depend on the amount you deposit and the interest rate paid.
You can get an idea of how much interest you could earn over one year with the table below. The interest rates used are the average one-year fixed rate (3.79% AER) and one of the top one-year fixed rates on the market (4.20% AER), as of March 2026.
This is intended to be a guide; the exact returns you receive and the interest rates available may differ.
| 3.79% AER | 4.20% AER | |
| £5,000 | £189.50 | £210 |
| £10,000 | £379 | £420 |
| £25,000 | £947.50 | £1,050 |
Use our lump sum savings calculator to get an idea of how much interest you could earn.
Bear in mind that interest on one-year bonds is paid gross so, depending on the amount you earn and your taxpayer status, you may be liable to pay tax on your returns.
With the Personal Savings Allowance (PSA), basic-rate taxpayers can earn up to £1,000 in interest without paying tax. This allowance drops to £500 for higher-rate taxpayers while additional-rate taxpayers have no allowance.
As a result, it’s important to pay attention to how much interest you’re earning on a one-year bond, in addition to any other savings. If you earn more interest than your PSA, it may be worth reevaluating your savings strategy and consider using an ISA, if you’re not already.
Longer-term fixed bonds usually pay higher interest rates than one-year bonds as providers typically offer a better return in exchange for locking away your money for an extended period of time.
However, this isn’t always the case as volatility in the savings market can mean shorter-term bonds offer higher rates. For example, over the past few years, one-year bonds often paid the highest returns as savings rates were widely expected to fall in the future, so providers typically priced their long-term fixed accounts at a lower rate.
2026 has seen a return to a more ‘traditional’ savings market as long-term bonds have started to offer comparable or higher rates than one-year fixed accounts.
For an up-to-date comparison of one-year bonds with longer-term accounts, see our chart above and visit our three- and five-year bond charts.
No. Once you’ve opened a one-year bond, the interest rate is fixed and won’t change over the one-year term.
By contrast, variable savings accounts could start to pay a higher or lower rate than when you initially opened the account as providers are able to change the interest rate on these accounts whenever they choose.
No. As with the rate itself, once you’ve agreed on the term, it cannot be changed. This is true for all fixed rate bonds and fixed ISAs of any term length.
The only options are to access your funds early, if allowed (subject to an interest penalty), or wait until the bond has matured to reinvest the funds into a new account.
A one-year bond may be worth considering for any savers who:
Yes, one-year bonds can be useful for saving towards a specific goal, such as home improvements, a wedding, a holiday, a new car or another expensive purchase.
If you know you won’t need the money for at least one year, putting it in a one-year bond allows it to earn guaranteed interest and means you won’t be tempted to dip into your savings for any other purpose.
At the end of the one-year term your funds will be released. Your provider should contact you ahead of this to outline the options available, allowing you to choose what you do with your money.
For example, you could choose to reinvest your money into a new fixed bond or move it to an easy access account with the same provider. Alternatively, you could cash in your savings and have the money transferred to your current account (or other nominated account).
If you don’t tell the provider what you want to happen at the end of the fixed term, the provider will make the decision for you.
Some providers may automatically reinvest your savings into a new one-year fixed rate bond, while others may move it into a low-paying variable rate account. When the provider contacts you with your options, it will say what will happen to your money if you don’t do anything.
Always make sure you let the provider know what you want to do with your savings when the bond matures, otherwise you could miss out on interest or find that your money is tied up for yet another year.
If a one-year bond isn’t quite right for you, there are other savings options you could consider instead.
Ideally, the best time to open a one-year fixed bond is when interest rates are at their highest, before they start to drop, as this means you can get the best return on your savings. However, as it’s impossible to know what will happen to savings rates in the future and when they will reach their peak, you can only guess when is the best time to lock in a one-year fixed rate.
Bear in mind that, unlike ISAs which often see increased competition around the start and end of the tax-year, there isn’t a particular time of year when fixed bonds see a notable change.
While you can’t withdraw interest payments from your account during the one-year term, the provider may be able to pay the interest earned into your bank account each month instead of the one-year bond. Bear in mind that having interest paid out into a different account means you will earn less interest overall than if it was paid into the savings account as you won’t earn interest on your interest payments.
Not all providers can pay interest to a different account, so it’s worth checking the terms of an account to see if this option is available.
No, the fixed bond is in your name; you can’t transfer it to someone else. However, once the fixed term ends, there’s nothing stopping you from transferring this money to another individual.
Most one-year fixed bonds don’t allow any kind of withdrawals before the end of the term. The few accounts that do permit earlier access to your savings may offer lower interest rates and will almost certainly apply some form of penalty charge, such as a loss of interest.
Bear in mind that, after opening a fixed rate bond, there may be a 14-day cooling off period, during which you can change your mind, cancel the account without penalty and get your deposit(s) back.
One-year bonds typically pay higher interest rates than their ISA counterparts. For example, one-year bonds paid an average of 3.79% at the start of March 2026 compared to an average of 3.75% for one-year ISAs, according to Moneyfacts’ data. It’s worth checking our one-year ISA charts to compare the latest rates with the top one-year bonds available.
Similarly, one-year bonds traditionally paid higher rates than easy access savings accounts, given their restrictions on withdrawals. However, in recent months and years the leading easy access rates have been comparable to the best 1 year fixed rate bonds, or sometimes even higher.
But bear in mind that, even though an easy access account may pay a higher rate initially, there’s always a risk that the rate could drop (particularly if it offers a bonus rate for a limited period). By contrast, the rate on one-year bonds is fixed for the term and won’t be affected by any declines in savings rates.
Fixed rate bonds are simply another term for a fixed rate savings account; there’s no difference between them.
You can open as many one-year fixed rate bonds as you like, provided you adhere to the terms and conditions of each. Just make sure that you split your money between different banking providers to ensure you’re keeping within Financial Services Compensation Scheme (FSCS) limits, and be mindful of your Personal Savings Allowance (PSA).
Bear in mind that some providers may only allow you to have a single one-year bond with them at any one time, and minimum or maximum deposit requirements may apply.
It may be possible to open multiple one-year bonds with the same provider. However, individual providers may set their own criteria and restrictions, so it’s worth checking before opening multiple bonds with a single provider.
Furthermore, if you have multiple bonds with the same provider, make sure you consider whether your total deposits with them exceed £120,000, as the Financial Services Compensation Scheme (FSCS) will only offer protection up to this limit.
One-year bonds are usually a standard savings account without any special offers or perks. However, to attract customers, providers may occasionally offer a boosted rate or special offer for a limited period (such as cashback) for eligible savers who open a particular account.
Unlike ISAs, fixed rate bonds don’t have any tax benefits. The interest you earn on these accounts may be subject to income tax. If you want to earn guaranteed interest on your savings for one year without worrying about tax, you could consider a one-year fixed ISA.
No, savings accounts, including one-year bonds, don’t typically charge any fees. Bear in mind that some accounts may only be available if you have an existing account with a provider, which may charge a fee.
No, once you open a fixed bond, your money is tied to that account with the same provider. You can’t usually move your money to another provider before the end of the term. If a provider does allow you to access your money sooner, this will usually incur some form of penalty charge.
Yes. If a one-year bond allows it, any saver (including those aged over 60) can open the account online.
To compare fixed rate bonds of all term lengths, ranging from a few months to five years or more, visit our fixed rate bonds chart.
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Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
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