Compare 1 year fixed rate bonds

Choose from a variety of 1 year fixed rate bonds to find one that will help your savings grow by paying you a fixed rate of interest for 12 months.

8 results found, sorted by highest interest rate. How we order our comparisons. Commission earned affects the table's sort order.
Habib Bank Zurich Plc HBZ SIRAT eDeposit Islamic Fixed Term Deposit Account 12 months
Account type
Fixed rate bond
Open with
Interest rate
1.1% EPR (gross p.a.)
Protection scheme
This account operates under Shariah principles. It offers an expected profit rate rather than interest. The profit shared is generated from investing in ethical goods and services. T&Cs apply.
Rate Tiers
Gross rateGross rateAERAER
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
Minimum Initial Deposit£5,000
Minimum Age18 years
Permanent UK Resident

What are 1 year fixed rate bonds

1 year fixed rate bonds are savings accounts that offer a fixed rate of interest for the whole duration of a year. This means that no matter if the base rate falls or rises, you'll get a fixed return for 12 months.

Which one year fixed bond should you choose?

The one that offers you the highest interest rate for the amount you can afford to save.

You should also consider the following when choosing your fixed rate bonds:

  • Can you tie your money up for 12 months? You could be penalised for withdrawing before the end of the 12 months, e.g. 90 days' worth of interest.

  • Can you get more interest without tying your money up for a year Some instant access or notice accounts might offer a better rate for the amount you want to save.

  • Can you leave your money untouched for longer than a year? You can usually get a better rate if you tie your money up for more than 12 months.

Make sure you compare as many one year fixed bonds as possible from our table to find the best investment for your money.

Here is how a fixed bond works

What types of bonds can you choose for one year?

Our table shows the following types of one year fixed interest accounts:

  • Fixed rate bonds: these run for a year from the date you open the account.

  • Limited issue bonds: these run until a set date; e.g. 30th March in one year's time.

Here is how to choose the right savings account

How to find the best 1 year fixed rate bond

When you're looking for the best 1 year fixed rate bond for your savings goals, there are a few things to think about. So before you compare fixed rate bonds, ask yourself the following questions

  • How long can you leave your money untouched? Some fixed rate bonds don't let you access your cash once they're opened.

  • What's the interest rate? The best fixed rate bonds have higher rates of interest. This gives you more for your money.

  • How much do you want to save? Some fixed rate bonds can be opened with as little as £1 whereas others need a lot more.

  • How is the interest to be paid out? The best 1 year fixed rate bonds usually let you choose whether to have it paid monthly or at the end of the term, when the bond matures.

How much money do you need to open a one year fixed bond?

This can vary between £1 to £50,000, but the minimum required amount does not always reflect how good a fixed rate bond is.

For example, a one year fixed rate bond that requires you to open it with £50,000 may offer 1%, but another one year bond that requires £1 could offer 1.5%.

You can see how much is required to open each of the one year fixed rate bonds on our table.

What are the advantages of a 1 year fixed rate bond?

One year fixed rate bonds can be useful, especially if you're in a position to deposit a lump-sum that you don't need to access for 12 months:

Some of the benefits include:

  • Your interest rate is fixed for a year and you're guaranteed a return on your money

  • You'll know the exact amount of the expected return

  • You have a defined savings period

  • You're protected form interest rate changes

  • With a 1 year fixed rate bond, you can earn a return on your money without tying it up for too long.

Is a 1 year fixed rate bond the best place for my savings?

A 1 year fixed rate bond is a savings account that guarantees your interest rate for a year, though at the cost of not being able to access your money for that period, or having to pay a fee to do so.

A fixed rate bond can be the right choice if you want to avoid risk and uncertainty over your interest rate. However, if you want to be able to access your savings, it is probably not the right option for you.

One alternative might be to consider high interest current accounts, though the amount of savings you can earn interest on will usually be limited. These accounts work like standard current accounts, so you will be able to access your money when you need it.

You could also consider an easy access or instant access savings account if you want the freedom to withdraw money. However, it is unlikely that easy access and instant access savings accounts will be able to match the interest rates of a fixed term bond.

If you can't find the right interest rate for you, it might be worth considering investing your savings. You can find out more about the best ways to invest your money here.

Do you pay tax on savings?

Yes, but you do not need to pay tax on all of the interest you make on your savings if you qualify for a starting rate for savings, personal savings allowance or personal allowance.

Find out more about paying tax on your savings here.

One year fixed bond FAQs

Look out for protection schemes, whether UK based like the FSCS, or company provided as seen from P2P companies. Find out more here.

If you are a basic rate taxpayer you can earn up to £1,000 of savings interest tax free, or £500 if you are a higher rate taxpayer. Find out more here.

Yes, but make sure you keep some money accessible in case of an emergency. Read this guide for help choosing the right savings account.

It is the Annual Equivalent Rate which tells you how much interest you will actually get paid until the end of the term of your chosen fixed rate bond.

About our 1 year fixed rate bonds comparison

Our comparison tables include providers we have commercial arrangements with. The number of listings in our tables can vary depending on the terms of those arrangements, as well as other market developments. They are all from providers regulated by the Financial Conduct Authority (FCA).

Here is more information about how our website works.

We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.

You do not pay any extra and the deal you get is not affected.

Last updated: 22 February 2021