Best 1 Year Fixed Rate Bonds
We found 138 PRODUCTS in total, of which 32 are EASY TO OPEN
SmartSave Flagstone - 1 Year Fixed Term Deposit
Close Brothers Savings HL Active Savings - 1 Year Fixed Term Deposit
StreamBank Fixed Rate Account - Issue 23
4.20%
Fixed
1 Year Bond
Yearly
Online
Online
Flexible account allowing 1 withdrawal up to 20% of the account balance allowed during term of the bond.
Fixed rate of interest for duration of account term.
Easy to open & manage your account online.
Open with a minimum balance of £1, and with a maximum balance of £1,000,000
Progressive Building Society is authorised by the Prudential Regulation Authority.
Bank of London and The Middle East 1 Year Premier Deposit Account
Habib Bank Zurich plc HBZ Fixed Rate eDeposit Account
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.
Habib Bank Zurich plc HBZ Fixed Rate Sirat eDeposit Account
Hampshire Trust Bank 1 Year Online Fixed Saver (Issue 74)
4.40%
Fixed
1 Year Bond
On Maturity, Monthly
Online
Online, Telephone
Save up to £2,000,000, with a minimum balance of £1,000
Get certainty with a fixed rate for the duration of your term
Apply for an account in minutes with a straightforward online application process
Choose how frequently your interest gets paid, either monthly or annually
Save with an award-winning provider with over 300,000 savings customers in the UK
National Bank of Egypt (UK) Limited Raisin UK - 1 Year Fixed Term Deposit
Kent Reliance HL Active Savings - 1 Year Fixed Term Deposit
BPI Europe PLC Raisin UK - 1 Year Fixed Term Deposit
Eligible deposits with UK institutions are protected by the FSCS up to £85,000 per person per institution. Covers all new UK bank and savings accounts for UK customers.
DisclaimerAll rates subject to change without notice. Please check all rates and terms before investing or borrowing.
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A one-year fixed rate bond works by asking you to lock a lump sum of money away for 12 months in return for a set interest rate. It can offer better returns than, say, easy access accounts, without tying up your money for an extended period, offering the ideal trade-off between access and a decent return.
There will normally be minimum investment requirements – the very best one-year fixed rate bonds typically expect a larger investment of at least £1,000 or even £10,000. Interest is often paid on maturity or yearly, though some will pay interest monthly.
In most cases, fixed rate one-year bonds will not allow withdrawals – you may find one or two that allow access with an interest penalty, though this will likely eat up any interest earned. You normally won’t be able to make any further deposits into the account either.
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 FSCS limits, and be mindful of your personal savings allowance.
No. Once you’ve set up the account at the agreed rate, it won’t change over the term. This can provide a great deal of security and means you’re guaranteed to get the interest you expect. However, it can also be a downside for some savers, as if interest rates were to rise during the year, you wouldn’t be able to take advantage.
No. As with the rate itself, once you’ve agreed on the term, it cannot be changed. The only options are to access your funds early if allowed (subject to an interest penalty), or reinvest the funds into a new account once the bond has matured.
A year is a relatively short time to lock your money away, which means one-year fixed rate bonds can be ideal for anyone considering a short-term savings option. However, due to the restrictions on withdrawals, you must be certain that you won’t need access to these funds during the term.
At the end of the term your funds will be released. Your provider should contact you ahead of this to outline the options available, which will usually be reinvesting into one of their products or cashing in. Bear in mind that most providers will automatically transfer your funds into a nominated or lower-paying variable rate account when the bond matures, so make sure to instruct them ahead of time so you’re not missing out on valuable interest.
If you’re not comfortable with locking your money away you may want to consider one of the best notice accounts instead, which will allow access provided you give notice to your provider. Then there are easy access accounts which permit access at will, or if you don’t mind locking your money away but want a slightly shorter term, a fixed bond of up to one year could be a great compromise. Alternatively, if you feel confident about committing to a longer period, you might consider a two-year fixed rate bond instead.