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Our best one year fixed rate bonds
Accurate as of Saturday, 13 December 2025
Results preview sorted by highest to lowest interest rates - to compare our complete list of savings accounts, including cash ISAs and fixed term bonds, view our full results table.
What is a fixed rate bond?
Fixed rate bonds are a type of savings account that lock away your money for a 'fixed' period, from 9 months to five years.
Depending on the provider, interest is paid annually, monthly, or quarterly. You’ll usually collect your returns at the end of the term.
Unlike easy access savers, withdrawing money from fixed rate bonds will result in losing your interest rate - so be sure you don't need access before opening one.
How do fixed-rate bonds work?
1) Choose your bond: Compare the interest rates available and the length of the bond term before making your choice
2) Deposit your money: Pay at least the minimum deposit into the savings bond. You can’t usually add to your initial deposit at a later date
3) Collect your money with interest: When the bond matures you can withdraw your money plus the interest it’s earned – which will be at the fixed rate
How does a one-year fixed rate bond work?
A fixed rate bond is a lower-risk way of saving money where you know exactly what you’ll receive at the end of the term.
Why is now a good time to fix my savings rate?
The Bank of England (BoE) base rate stands at 4% (December 2025) following a cut on the 7th of August. With more cuts predicted in the next 6-12 months, now could be a good time to lock your money away and secure a higher rate.
Fixed one-year bonds pay a higher rate than variable rate and easy access accounts, as they lock your money away and you are unable to access it
How much can I earn with a one-year fixed rate bond?
The amount you earn through a one-year fixed rate bond depends on:
Your initial deposit
The guaranteed rate of interest
This table shows some examples* of how much you would make over one year with different-sized savings deposits and different fixed rates of interest. The returns are gross and do not take any applicable tax into account.
Initial deposit | 4% | 5% | 6% |
|---|---|---|---|
£5,000 | £5,200 | £5,250 | £5,300 |
£10,000 | £10,400 | £10,500 | £10,600 |
£15,000 | £15,600 | £15,750 | £15,900 |
*Interest rates shown are for illustration purposes only and are not related to actual savings products or bonds available on MoneySuperMarket.
What are the pros and cons of a 1-year fixed rate bond?
There are a number of things to consider with fixed rate savings bonds:
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Advantages
You’ll receive a guaranteed return after 12 months
Savings bonds are one of the safest types of investment
Good option for saving a large lump sum
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Disadvantages
Your money is locked away with penalty charges if you need it early
Returns could be higher with other types of savings products
You may have to pay tax on the interest if it is over the personal savings allowance
Why compare one-year fixed rate bonds with MoneySuperMarket?
We have a broad range of competitive deals so you can find the right short-term savings account for you.
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See our range of accounts in seconds
See all our one year bond deals in one place by filtering Term Length to 1 year
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We only work with trusted providers
Save safe in the knowledge that your money will be secure when you choose a deal with us
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See key details at a glance
Each listing shows you the interest rate, account type and the minimum/maximum deposit you can make
How to choose the best one-year fixed rate bond
Consider these factors before deciding whether to go for a one-year fixed rate bond:
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Interest rate
The higher the interest rate, generally the more money you’ll get back.
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Amount of deposit
Bonds have minimum and maximum amounts you can save.
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Penalty charges
Check the small print in case you need the money before the bond matures.
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Managing your savings
Can you manage it easily, either online or through an app?
What happens at the end of my one year bond?
After 12 months, your bond will come to an end. This is known as ‘maturity’ of the bond
Your savings provider will usually write to you ahead of the maturity date to let you know your options
Generally, you can withdraw the bond proceeds, including the deposit and interest, as a lump sum. You can then move into another savings account or take out a new fixed rate bond
You don’t have to stick with the same provider, so make sure you shop around when your bond matures to find the best deal available
Our expert says…
A one-year fixed rate bond is a simple and effective way of saving and our best currently pay an attractive rate of 4%. As long as you're happy to lock your money away for 12 months, you’ll get a guaranteed return. It’s also a really safe way of saving as you’ll benefit from the Government-backed Financial Services Competition Scheme, which protects up to the first £120,000 of your money per financial institution.
Kara Gammell Personal Finance & Insurance Expert
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MoneySuperMarket has won the Feefo Platinum Trusted Service Award, an independent seal of excellence, which recognises businesses that consistently deliver a world-class customer experience.
Which savings product offers the best rate?
In general, if you're prepared to locking your money away for a set period in a fixed-rate bond, you'll get a better rate of interest on your savings. But that's not always the case.
To help you make a call on the best savings product for your needs and maximise your returns, we've compiled the top rates on the key product categories in the table here:
Account Type | Highest savings rate through MoneySuperMarket |
|---|---|
Cash ISA | 4.52%^ |
Easy Access | 6.00%^ |
1 Year Fixed Rate | 4.42%^ |
2 Year Fixed Rate | 4.25%^ |
5 Year Fixed Rate | 4.26%^ |
Compare one-year fixed-rate bonds with MoneySuperMarket
You can compare fixed rate bonds easily and all in one place with us.
Learn more about fixed rate bonds and savings
What is AER?
AER stands for 'Annual Equivalent Rate' and shows how much interest you'd earn over the savings account or bond term.
What happens if I want to withdraw my money early from a one-year fixed rate bond?
Each provider will have different terms, but you are likely to have to pay a penalty charge if you need the money early. This could be the loss of all interest. It’s why you should only open a bond if you’re confident you can lock the money away for the designated term.
Can I extend the term of my fixed-rate bond?
No, the one-year fixed rate bond lasts for 12 months and you’re unable to amend the term of the bond in the interim. When 12 months have elapsed and you reach the end of the fixed term, you'll be able to decide what to do with your money next. If you want a longer period then opt for a two, three or five-year bond at the outset, for example. You may find the longer you agree to lock your money away, the better rate of return you’ll get.
What interest rate can I get on a fixed rate bond?
Interest rates vary depending on a number of factors, including the provider’s view of the market and the Bank of England’s base interest rate. As the base rate rises, the terms of fixed term bonds should rise too. But it’s always worth searching the market before making a final decision.
How much can I invest in a one-year bond?
The maximum amount you can invest in a one-year fixed term bond varies from provider to provider. Most let you put at least £120,000 into a one-year bond (equivalent to the amount that is protected under the Financial Services Compensation Scheme) – although some bonds let you save much more.
Is my money protected by the FSCS?
Your money will be protected up to the first £120,000 per financial institution as long as the bond provider is part of the Financial Services Compensation Scheme. This is guaranteed by the government in the unlikely event that the bank or building society in question collapses.
How long can I wait between my first and last deposit?
Most fixed rate bond accounts only accept one initial lump sum deposit and do not allow any further deposits. But some may remain open to funds for a bit longer. Check with your provider for the cut-off date to deposit once the account is open.
Is interest paid monthly or at the end of the term?
Most one-year fixed rate bonds pay interest at the end of the 12-month term, but some accounts will pay monthly interest, or even quarterly. You can often nominate a separate bank account for the interest payments to be paid into.
Should I get a fixed-rate ISA or a fixed-rate bond?
For the most part, ISAs and fixed rate savings bonds offer comparable rates of interest. But the critical selling point of an ISA is that any interest you earn is tax-free.
A fixed-rate bond could still be a good bet, though, if you’ve already maxxed-out your annual ISA allowance and want a better-than-average return on your savings.
Can you close a fixed rate bond early?
Closing a fixed-rate bond early typically comes with a penalty. Some bond providers may allow you close your bond before it's matured, but will charge you interest for doing so.
However, depending on the provider's terms, you may be able to close your bond early in the event that you're living with a critical or terminal illness, or in the event of the death of the account-holder.
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We commit to providing you with clear and informative answers on all points such as this, so we have gathered the relevant information on this page.
Reviewed on 12 Dec 2025 by
Accurate as of 12 December 2025.
Accurate as of 12 December 2025.
Accurate as of 12 December 2025.
Accurate as of 12 December 2025.
Accurate as of 12 December 2025.