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Why should I choose a one year fixed rate bond? 

If you can afford to lock your savings away for 12 months or longer, a one year fixed rate bond may earn you more interest than other types of savings accounts. The best rates are usually offered by challenger banks. View today's best rates below or read our guide to one year fixed rate bonds to learn more. 

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Browse Fixed Rate Bond Terms

Best 1 Year Fixed Rate Bonds

  • Bank of London and The Middle East Logo
    Bank of London and The Middle East Premier Deposit Account (Anticipated Profit Rate) FSCS logo
    FSCS logo
    AER
    2.25%
    Expected Rate
    Account Type
    Fixed
    Notice / Term
    18 Month Bond
    Interest Paid
    Anniversary
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Not Available Online Not Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    Additional Information

    Rates

    Rate 2.25% paid at £1K
    AER 2.25% paid at £1K
    Expected Profit Paid Anniversary
    Interest payment Interest must be paid away
    Min Opening Amount £1,000
    Max Investment £1,000,000
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a linked or nominated account

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

    Opening Restrictions

    Linked Product (Non-Funded): Must have or open a BLME transfer account to hold funds pending investment

    Additional Information

    This bank operates under Islamic finance principles, the rates displayed represent the expected profit rate.
  • Bank of London and The Middle East Logo
    Bank of London and The Middle East Premier Deposit Account (Anticipated Profit Rate) FSCS logo
    FSCS logo
    AER
    2.10%
    Expected Rate
    Account Type
    Fixed
    Notice / Term
    1 Year Bond
    Interest Paid
    On Maturity
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Not Available Online Not Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    Additional Information

    Rates

    Rate 2.10% paid at £1K
    AER 2.10% paid at £1K
    Expected Profit Paid On Maturity
    Interest payment Interest must be paid away
    Min Opening Amount £1,000
    Max Investment £1,000,000
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a linked or nominated account

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

    Opening Restrictions

    Linked Product (Non-Funded): Must have or open a BLME transfer account to hold funds pending investment

    Additional Information

    This bank operates under Islamic finance principles, the rates displayed represent the expected profit rate.
  • QIB (UK) Logo
    QIB (UK) Raisin UK - 18 Month Fixed Term Deposit FSCS logo
    FSCS logo
    AER
    1.95%
    Expected Rate
    Account Type
    Fixed
    Notice / Term
    18 Month Bond
    Interest Paid
    On Maturity
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Available By Mail Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    Additional Information

    Rates

    Rate 1.95% paid at £1K
    AER 1.95% paid at £1K
    Expected Profit Paid On Maturity
    Interest payment Interest paid on maturity
    Min Opening Amount £1,000
    Max Investment £85,000
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a linked or nominated account

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

    Opening Restrictions

    N/A

    Additional Information

    This bank operates under Islamic finance principles, the rates displayed represent the expected profit rate. 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.
  • Bank of London and The Middle East Logo
    Bank of London and The Middle East Premier Deposit Account (Anticipated Profit Rate) FSCS logo
    FSCS logo
    AER
    1.86%
    Expected Rate
    Account Type
    Fixed
    Notice / Term
    6 Month Bond
    Interest Paid
    On Maturity
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Not Available Online Not Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    Additional Information

    Rates

    Rate 1.85% paid at £1K
    AER 1.86% paid at £1K
    Expected Profit Paid On Maturity
    Interest payment Interest must be paid away
    Min Opening Amount £1,000
    Max Investment £1,000,000
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a linked or nominated account

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

    Opening Restrictions

    Linked Product (Non-Funded): Must have or open a BLME transfer account to hold funds pending investment

    Additional Information

    This bank operates under Islamic finance principles, the rates displayed represent the expected profit rate.
  • Habib Bank Zurich plc Logo
    Habib Bank Zurich plc HBZ Fixed Rate eDeposit FSCS logo
    FSCS logo
    AER
    1.85%
    Account Type
    Fixed
    Notice / Term
    12 Month Bond
    Interest Paid
    On Maturity
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Not Available Online Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    Additional Information

    Rates

    Rate 1.85% paid at £1K
    AER 1.85% paid at £1K
    Interest Paid On Maturity
    Interest payment Interest must be compounded
    Min Opening Amount £1,000
    Max Investment £1,000,000
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a linked or nominated account

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

    Opening Restrictions

    N/A

    Additional Information

    N/A
  • QIB (UK) Logo
    QIB (UK) Raisin UK - 1 Year Fixed Term Deposit FSCS logo
    FSCS logo
    AER
    1.85%
    Expected Rate
    Account Type
    Fixed
    Notice / Term
    1 Year Bond
    Interest Paid
    On Maturity
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Available By Mail Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    Additional Information

    Rates

    Rate 1.85% paid at £1K
    AER 1.85% paid at £1K
    Expected Profit Paid On Maturity
    Interest payment Interest paid on maturity
    Min Opening Amount £1,000
    Max Investment £85,000
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a linked or nominated account

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

    Opening Restrictions

    N/A

    Additional Information

    This bank operates under Islamic finance principles, the rates displayed represent the expected profit rate. 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.
  • Axis Bank UK Ltd Logo
    Axis Bank UK Ltd Raisin UK - 1 Year Fixed Term Deposit FSCS logo
    FSCS logo
    AER
    1.80%
    Account Type
    Fixed
    Notice / Term
    1 Year Bond
    Interest Paid
    On Maturity (Compounded Annually)
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Available By Mail Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    Additional Information

    Rates

    Rate 1.80% paid at £1K
    AER 1.80% paid at £1K
    Interest Paid On Maturity (Compounded Annually)
    Interest payment Interest paid on maturity
    Min Opening Amount £1,000
    Max Investment £85,000
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

    Opening Restrictions

    N/A

    Additional Information

    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.
  • Zenith Bank (UK) Ltd Logo
    Zenith Bank (UK) Ltd Raisin UK - 1 Year Fixed Term Deposit FSCS logo
    FSCS logo
    AER
    1.80%
    Account Type
    Fixed
    Notice / Term
    1 Year Bond
    Interest Paid
    On Maturity
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Available By Mail Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    Additional Information

    Rates

    Rate 1.80% paid at £1K
    AER 1.80% paid at £1K
    Interest Paid On Maturity
    Interest payment Interest must be compounded
    Min Opening Amount £1,000
    Max Investment £85,000
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a linked or nominated account

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

    Opening Restrictions

    N/A

    Additional Information

    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.
  • Aldermore Logo
    Aldermore 1 Year Fixed Rate Account FSCS logo
    FSCS logo
    AER
    1.75%
    Account Type
    Fixed
    Notice / Term
    1 Year Bond
    Interest Paid
    Monthly
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    Additional Information

    Rates

    Rate 1.74% paid at £1K
    AER 1.75% paid at £1K
    Interest Paid Monthly
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £1,000
    Max Investment £1,000,000
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be reinvested in a further Fixed Rate/Fixed Term account on equivalent/similar terms

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

    Opening Restrictions

    N/A

    Additional Information

    N/A
  • Aldermore Logo
    Aldermore 1 Year Fixed Rate Account FSCS logo
    FSCS logo
    AER
    1.75%
    Account Type
    Fixed
    Notice / Term
    1 Year Bond
    Interest Paid
    On Maturity
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    Additional Information

    Rates

    Rate 1.75% paid at £1K
    AER 1.75% paid at £1K
    Interest Paid On Maturity
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £1,000
    Max Investment £1,000,000
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be reinvested in a further Fixed Rate/Fixed Term account on equivalent/similar terms

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

    Opening Restrictions

    N/A

    Additional Information

    N/A

Select a Savings Category

Note

Eligible deposits with UK institutions are protected by the Financial Services Compensation Scheme up to a maximum level of protection of £85,000 per person per institution.

Disclaimer

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

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A guide to one year fixed rate bonds

Leanne Macardle

Leanne Macardle

Editor

At a glance

  • One year fixed rate bonds are a great short-term savings option as rates tend to be higher than on notice and easy access accounts.
  • Most one year fixed rate bonds do not let you access your money early.
  • The best rates usually offered by challenger banks.
  • All banks and building societies we list are covered by the Financial Services Compensation Scheme (or European equivalent).

Why should I choose a one year fixed rate bond?

Essentially a one year fixed bond is likely to offer you a better rate of interest than a simple easy access account. In return for your agreement not to touch the funds for the fixed period of 12 months, the provider can offer you a superior return than those where funds can be withdrawn at will. In most cases, you’ll find that one-year fixed rate bonds will not allow any withdrawals – although you may find one or two that allow you access with an interest penalty. Hence these accounts are perfect for investors who can happily put the funds to one side for the duration of the bond.

A one year fixed rate bond is what’s known as a short-term bond. These offer better returns but do not lock your money away for an extended period. Consequently, they are a useful trade-off between access and obtaining a decent return on your investment.

Who are one year bonds most suitable for?

One year fixed rate bonds are ideal for anyone considering a short-term investment (i.e. anything up to 12 months). A year is a relatively short time to lock your money away, but due to the restrictions on withdrawals, you must be certain that you will not need access to these funds during the one-year duration you have agreed to. If you feel confident about committing to a longer period, you might consider a two year fixed rate bond instead.

Open to even longer terms? Three, four and five year fixed rate bond terms are also available.

Don’t recognise a fixed rate bond provider?

A trend in the one-year fixed rate bond market is for the best rates to be offered by smaller, less mainstream banks. These are referred to as challenger banks, however, you should not any have any concerns that your money is any less safe with one of these institutions than with one of the bigger, high street brands. All banks and building societies listed by Moneyfacts.co.uk are part of the Financial Services Compensation Scheme (or an EU equivalent). As such, the first £85,0000 you have saved is fully protected should the bank or building society fail.

Ready to compare today's bond rates? Click below to view the best one year fixed rate bonds at the top of the page.

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