nigel woollsey

Nigel Woollsey

Online Writer
Published: 19/11/2019

Short-term fixed rate bonds can be an attractive proposition for anyone looking to earn more interest than an easy access account without locking their money away for too long. Currently, there are three Islamic banks all offering the top expected profit rate of 1.85% for a one-year fixed rate bond. However, as you can see from our table below, there is a difference of just 0.15% between the top of the chart and the bottom, meaning that you are not losing much interest if you like the terms of an account further down the table. In addition, if you have more than £85,000 to save, you can do so in different institutions and remain protected.

 

Seven best one-year fixed rate bonds in November

Provider

Account

Term

Rate AER

Bank of London and The Middle East

Premier Deposit Account

One year

1.90% (expected profit rate)

Gatehouse Bank

Fixed Term Deposit

One year

1.85% (expected profit rate)

Gatehouse Raisin

1 Year Fixed Term Deposit

One year

1.85% (expected profit rate)

Metro Bank

Fixed Term Savings Account

One year

1.80%

Ikano Bank

Fixed 1 Year Saver

One year

1.76%

United Trust Bank

UTB 1 Year Bond

One year

1.76%

Axis Raisin

1 Year Fixed Term Deposit

One year

1.75%

 

Leading the pack is the Premier Deposit Account from the Bank of London and The Middle East (BLME). For a one-year fixed rate term this pays an expected profit rate of 1.90% on a minimum deposit of £1,000, that is paid on maturity. This account must be opened online and then managed by post, but applicants must have or be prepared to open a BLME transfer account to hold funds pending investment. This bank operates under Islamic finance principles.

Gatehouse Bank are offering an expected profit rate of 1.85% for their online-only Fixed Term Deposit account with a minimum deposit of £1,000. The expected profit rate is paid on the anniversary of account opening and this bank operates under Islamic finance principles.

Completing the top three is Gatehouse Bank - Raisin UK, with their 1 Year Fixed Term Deposit that pays an expected profit rate of 1.85%. Expected profit is paid on maturity and there is a minimum deposit of £1,000. This account can only be opened online but can then be managed by post or by phone too. It should be noted that in addition to this bank operating under Islamic finance principles, applicants will need to set up a Raisin UK account online and accept their terms and conditions before applying for this fixed term deposit. Raisin are currently offering a bonus of up to £100 for opening a savings account via their website.

Metro Bank are offering their Fixed Term Savings Account paying interest of either 1.80% on the anniversary of opening or 1.79% monthly. This account has a minimum deposit of just £500, putting it within reach of many savers. Savers wanting to open this account will need to already have another Metro Bank account or to open an Instant Access account for transactional purposes. This fixed term account can be opened online or in branch and then managed by phone once set up.

Ikano Bank’s Fixed 1 Year Saver pays 1.76% on the anniversary of opening or 1.75% if you choose monthly interest. Requiring a minimum deposit of £1,000, this account can be opened online and then managed online and by phone too. Unusually, this account also has the bonus option of allowing further additions within 14 days of application from a nominated account. Savers should note that this bank operates in the UK under a European Economic Area (EEA) passport scheme. Savings placed with Ikano will be protected by the depositor protection scheme in Sweden and not the UK scheme. In Sweden, the first £85,000 per person, per banking licence, is protected. Deposits held by companies, partnerships and charities are also covered.

Find out more about the depositor protection scheme.

Savers will need a minimum deposit of £5,000 to open a UTB 1 Year Bond from United Trust Bank. This account pays 1.76% on maturity. Opening is online but management after this is done via post or phone.

Finally, Axis Bank UK Ltd offers their Raisin UK - 1 Year Fixed Term Deposit at a rate of 1.75% fixed for twelve months. The minimum deposit is £1,000 and the account can be opened online only. After this, the account can be managed by phone or by post. Interest is paid on maturity. Raisin UK is a savings marketplace offering a range of accounts. By clicking through for this product you will be directed to Raisin UK Savings Marketplace, who will administer your application. You will need to set up a Raisin UK account online and accept their terms and conditions before you apply. Raisin UK are offering a bonus of up to £100 when you open a savings account via their website. Terms and conditions apply.

Disclaimer

Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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