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One year fixed rate bonds

Compare one year fixed rate bonds

  • Lock your money away for a year and get better interest rates

  • See our fixed rate accounts in 1 click

  • Your money is safe with our FSCS-regulated providers

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Our best one year fixed rate bonds

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SmartSave Bank

Saga Savings - 6 Month Fixed Term Deposit

  • Interest Rate (AER)

    5.19% Fixed

  • Account type

    6 month Fixed

  • Min/Max Deposit

    £10,000.00 to £1,000,000.00

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Emirates NBD

HL Active Savings - 6 Month Fixed Term Deposit

  • Interest Rate (AER)

    5.11% Fixed

  • Account type

    6 month Fixed

  • Min/Max Deposit

    £1.00 to £10,000,000.00

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Al Rayan Bank

Raisin UK - 1 Year Fixed Term Deposit

  • Interest Rate (AER)

    5.1% Fixed

  • Account type

    1 year Fixed

  • Min/Max Deposit

    £5,000.00 to £85,000.00

Accurate as of April 2024

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. 

  • Make a deposit

    Open the bond online with your chosen provider and make your initial deposit. 

  • Money is locked away

    Your money will be tied up for 12 months. Earlier withdrawals could lead to loss of interest.   

  • Get return with interest

    When the bond matures you receive the money back plus your interest.  

Why is now a good time to fix my money away for a year?

  • The Bank of England (BoE) base rate stands at 5.25% as of March 2024. This is the highest it has been in 15 years, since the 2008 financial crash.

  • With such high rates being passed onto savers in the form of high interest bank accounts, now is a great time to put your money aside.

  • 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

It’s worth noting that experts predict rates could start to drop from May 2024. So now could be a good time lock into a fixed rate and maximise returns from your savings.

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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: 

  • Tick

    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 



  • Cross

    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.

  • See our range of accounts in seconds

    See all our one year bond deals in one place by filtering Term Length to 1 year

  • We only work with trusted providers

    Save safe in the knowledge that your money will be secure when you choose a deal with us

  • 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: 

  • Interest rate

    The higher the interest rate, generally the more money you’ll get back. 

  • Amount of deposit

    Bonds have minimum and maximum amounts you can save. 

  • Penalty charges

    Check the small print in case you need the money before the bond matures. 

  • 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

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Victoria Russell

Our expert says

"

A one-year fixed rate bond is a simple and effective way of saving. You know your money will be locked away for 12 months and you know exactly how much you’ll get at the end. 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 £85,000 of your money per financial institution.

"
- Victoria Russell , Money & Savings Expert

Compare one-year fixed-rate bonds with MoneySuperMarket

You can compare fixed rate bonds easily and all in one place with us.  

  • See available bonds

    You can compare fixed rate bonds easily and all in one place with us.  

  • Refine your search

    Tell us your deposit and preferred length of term and we’ll show you your options. 

  • Open your bond

    Found the bond you want? Click through to complete your application online.  

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. 

No, the one-year fixed rate bond lasts for 12 months. After that you can decide what to do with your money. 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. 

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. 

The maximum amount you can invest in a one-year fixed term bond varies from provider to provider. Most let you put at least £85,000 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. 

Your money will be protected up to the first £85,000 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.  

Most fixed rate bond accounts only accept one initial lump sum deposit. 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.  

Most one-year fixed rate bonds pay interest at the end of the 12-month term, but some accounts will pay this interest quarterly or monthly. You can often nominate a separate bank account for the interest to be paid into. 

 

 
 

 



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