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Best 1 Year Fixed Rate Bonds

A one-year fixed rate bond is a kind of savings account that asks you to lock your money away for 12 months in return for a fixed rate of interest. It could be a good home for your savings if you don't need to access your funds within a year and want to know exactly how much interest you’ll earn in that time.

Ready to compare one-year fixed rate bonds? Start your search below.

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Browse Fixed Rate Bond Terms

Best 1 Year Fixed Rate Bonds

We found 130 PRODUCTS in total, of which 30 are EASY TO OPEN

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  • Al Rayan Bank Raisin UK - 1 Year Fixed Term Deposit
    AER
    4.80%
    Expected Rate
    Account Type
    Fixed
    Term
    1 Year Bond
    Interest Paid
    On Maturity (Compounded Annually)
    Go To Provider's Site
  • BPI Europe PLC Raisin UK - 1 Year Fixed Term Deposit
    AER
    4.80%
    Account Type
    Fixed
    Term
    1 Year Bond
    Interest Paid
    On Maturity
    Go To Provider's Site
  • SmartSave 1 Year Fixed Rate Saver
    AER
    4.76%
    Account Type
    Fixed
    Term
    1 Year Bond
    Interest Paid
    On Maturity (Compounded Annually)
    Go To Provider's Site
  • Advertisement

    • AER

      4.51%

      Account Type

      Fixed

      Term

      1 Year Bond

      Interest Paid

      On Maturity

      Opening Account

      Online

      Managing Account

      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 550,000 customers in the UK
  • GB Bank Raisin UK - 1 Year Fixed Term Deposit
    AER
    4.75%
    Account Type
    Fixed
    Term
    1 Year Bond
    Interest Paid
    On Maturity
    Go To Provider's Site
  • Habib Bank Zurich plc HBZ Fixed Rate eDeposit
    AER
    4.75%
    Account Type
    Fixed
    Term
    12 Month Bond
    Interest Paid
    On Maturity
    Go To Provider's Site
  • Habib Bank Zurich plc HBZ Sirat eDeposit (Fixed Term Account)
    AER
    4.75%
    Expected Rate
    Account Type
    Fixed
    Term
    12 Month Bond
    Interest Paid
    On Maturity
    Go To Provider's Site
  • QIB (UK) Raisin UK - 1 Year Fixed Term Deposit
    AER
    4.75%
    Expected Rate
    Account Type
    Fixed
    Term
    1 Year Bond
    Interest Paid
    On Maturity
    Go To Provider's Site
  • Close Brothers Savings HL Active Savings - 1 Year Fixed Term Deposit
    AER
    4.70%
    Account Type
    Fixed
    Term
    02.10.25
    Interest Paid
    On Maturity
    Go To Provider's Site
  • Bank of London and The Middle East 1 Year Premier Deposit Account
    AER
    4.65%
    Expected Rate
    Account Type
    Fixed
    Term
    1 Year Bond
    Interest Paid
    On Maturity
    Go To Provider's Site
  • Brown Shipley Raisin UK - 1 Year Fixed Term Deposit
    AER
    4.65%
    Account Type
    Fixed
    Term
    1 Year Bond
    Interest Paid
    On Maturity
    Go To Provider's Site
Depositor Protection

Eligible deposits with UK institutions are protected by the Financial Services Compensation Scheme (FSCS) up to a maximum level of protection of £85,000 per person per institution. All new savings or bank accounts provided to UK customers are now covered by the FSCS.

Disclaimer

All rates subject to change without notice. Please check all rates and terms before investing or borrowing.

Provider Links

‘Go To Provider's Site’ links are where we have an arrangement with a provider so you can move directly from our site to theirs to view more information and apply for a product. We also use ‘Speak to A Broker’ links where we have an arrangement with a preferred broker to move you directly to their site. Depending on the arrangement we may receive a modest commission either when you press a 'Go To Provider's Site' or 'Speak To A Broker' button, when you call an advertised number or when you complete an application following a link from our website.

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A guide to one-year fixed rate bonds

How does a one-year fixed rate bond work?

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.

 

Can interest rates change during the one-year term?

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.

 

Can you extend or shorten the one-year term?

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.

 

Is a one-year fixed rate bond suitable for me?

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.

 

What happens at the end of a one-year fixed bond?

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.

 

What are the alternatives to a one-year fixed rate bond?

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.

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Leanne Macardle

Freelance Contributor

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