When taking out a fixed rate bond, you are making an agreement with the bank or building society that you won't withdraw your cash for a specified period of time – in this instance, it will be for one-year. Most one-year fixed rate bonds will not let you have access to your money once it’s been deposited until the bond matures.
The recent trend in the one-year fixed rate bond market is for the best rates to be offered by smaller, relatively unknown banks. These are often referred to as challenger banks.
Learn more about challenger banks
Be reassured that all banks and building societies listed by moneyfacts.co.uk must be UK-licensed and part of the Financial Services Compensation Scheme (or an equivalent). This means that you can be safe in the knowledge that the first £85,000 you have saved is protected if the bank or building society were to go bust.
Learn more about depositor protection
Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.