Average one-year fixed savings rates marginally increased again this month, and some accounts are paying up to 6.11 percent.
However, savers are being urged to act “quickly” as longer-term rates are now starting to drop and popular accounts are being pulled from the market.
Rachel Springall, finance expert at moneyfactscompare.co.uk said: “One area of the market not blessed by rate rises this month is longer-term fixed bonds, with the average rate falling for the first time since March 2023.
“This signals a turnaround for the longer-term fixed rate market, perhaps not too unexpected with the Base Rate remaining on hold and the markets expecting rates to drop in the months ahead. Those savers considering a fixed bond or ISA may wish to act quickly to take advantage of the highest rates.”
Fixed rate savers can offer a layer of certainty to saving, as these accounts enable people to lock in the interest rate at the time of opening. However, these accounts can come with stricter withdrawal terms, meaning people should feel comfortable investing their money without touching it until the pot matures.
Here are the top 10 one-year fixed savings accounts on the market right now.
Top 10 one-year fixed savings accounts now
Topping the list is the Union Bank of India’s Fixed Rate Deposit offering an Annual Equivalent Rate (AER) of 6.11 percent. The account can be opened with a minimum of £1,000 and withdrawals are not permitted. Savers must be aged 18 or over and interest is paid on maturity.
Placing second is Habib Bank Zurich’s HBZ Fixed Rate eDeposit with an AER of 6.03 percent. The account can be opened with a larger deposit of £5,000 and withdrawals are not allowed. Savers must also be aged 18 or over and interest is paid on maturity.
Ziraat Bank’s One Year Fixed Term Deposit, offered through Raisin UK, places third with an AER of six percent. The account can be opened with £1,000 and withdrawals are not permitted. Savers must be aged 18 or over and interest is paid on maturity.
Al Rayan Bank places fourth with an Expected Profit Rate of 5.95 percent. Instead of paying interest to savers, Al Rayan Bank invests customers’ deposits in ethical, Sharia-compliant activities to generate a profit.
The account can be opened with a minimum deposit of £5,000 and profit is calculated monthly and paid quarterly. Savers must be aged 16 or over and withdrawals are not permitted.
In fifth place is Castle Trust Bank’s Fixed Rate e-Saver, also with an AER of 5.95 percent. The account can be opened with £1,000 and withdrawals are not allowed. Savers must be 18 or over and interest is paid on maturity.
Placing sixth is Close Brothers Savings One Year Fixed Rate Bond with an AER of 5.95 percent. A larger deposit of £10,000 is required to open the account and withdrawals are not permitted. Savers must be 18, interest is paid annually and up to £2million can be invested.
SmartSave places seventh with its One Year Fixed Rate Saver with an AER of 5.94 percent. A £10,000 minimum deposit is required but a smaller sum of £85,000 can be held in the account overall. Interest is paid on maturity, withdrawals are not permitted, and savers must be aged 18 or over.
In eighth place is Gatehouse Bank’s One Year Fixed Term Woodland Saver with a profit rate of 5.9 percent. Gatehouse Bank operates under Sharia principles, which means profit is earned instead of interest and with a Woodland Saver, a new tree planted in UK woodland per bank account opened or renewed.
The account can be opened with £1,000 and profit can be paid monthly or annually. Savers must be aged 18 or over and withdrawals are not allowed.
Placing ninth on the list is Cynergy Bank’s Fixed Rate Bond, also with an AER of 5.9 percent. The account can be opened with £1,000 and interest is paid annually. Savers must be aged 18 and over and withdrawals are not permitted.
Finally, taking the tenth spot on the list is Ikano Bank’s Fixed One Year Saver Account with an AER of 5.84 percent. The account can be opened with £1,000 and interest is paid on the anniversary. Savers must be aged 18 and over and similar to the rest, withdrawals are not allowed until the account matures.
