Compare 1 Year Fixed Rate Bonds
1 Year Fixed Rate Bonds
Why we like it: 1 Year Peer to Peer investment. Money invested in loan terms of up to 1 year. Capital and interest repaid at end of loan term. Access your money early funds available in market to replace withdrawal. Provision fund provides buffer against credit losses (not a guaranteed). Peer to peer lending is not covered by the FSCS
Why we like it: Save from £5,000 to £500,000. No additional deposits or withdrawals permitted. FSCS Protected
Why we like it: Minimum deposit £500. Open an account singly or jointly. Interest can be paid monthly or annually. Eligible deposits covered by UK FSCS.
Why we like it: 1 year term. Interest can be paid monthly or annually. Minimum deposit £500, Maximum deposit £250,000. No withdrawals permitted. FSCS Protected
Why we like it: Save from £5,000. No withdrawals during the term. FSCS Protected
Why we like it: Save time and hassle. 1 year term. Savers open one account with Octopus cash who then spread the money across some of the best challenger bank rates around. At the end of the term savers can either withdraw money or allow Octopus Cash to automatically switch accounts to the best rates on offer. FSCS Protected
Why we like it: Save from £1,000 to £1,000,000. No withdrawals before the end of the term. RCI Bank are protected up to a total of €100,000 by the FGDR (Fonds de Garantie Dépôts et de Résolution), the French deposit protection scheme. Apply online.
Why we like it: Interest paid at annually. Minimum deposit £1,000. No withdrawals permitted. FSCS Protected
Why we like it: Minimum deposit £1,000 - No withdrawals permitted - FSCS Protected
Why we like it: Minimum deposit £10,000. No withdrawals. Eligible deposits covered by UK FSCS.
Why we like it: Interest can be paid monthly, quarterly or at maturity - Minimum deposit £1,000 - Maximum deposit £200,000 - No withdrawals permitted - FSCS Protected
Why we like it: 9 month term. Interest can be paid monthly or annually. Minimum deposit £500, Maximum deposit £250,000. No withdrawals permitted. FSCS Protected
Is a 1 year fixed rate bond right for you?
Right now, current accounts offer the best rates of interest on smaller amounts of money. For example, TSB offer 3% AER on the TSB current account on balances up to £1,500, while Santander pay 1.5% AER on balances up to £20,000.
However, if you are looking to get a return on a larger sum, fixed rate bonds can be a great means of providing a secure income. They offer a guaranteed return for the life of the bond and let you keep your existing current account while transferring the balance not earning interest into the bond.
This makes depositing your money into a bond a relatively simple, hassle-free way to start making your money do more for you, without requiring you to change your day-to-day banking.
1 year fixed rate bonds can be particularly attractive as they mean your money is only locked away for a relatively short period. This can make them a good choice if you are planning to use your savings within the next few years. You can earn a return and maintain the value of your funds relative to inflation while still giving you access to your money when you need it.
Compare 1 year fixed rate bonds
We have selected some of the most attractive 1 year fixed rate bonds currently on offer below. The rates of interest the offer change regularly, so please see the table above for the latest rates.
Market leaders Vanquis Bank pay interest up to 1.30% on balances of £1,000-£250,000. You can choose to have your interest paid monthly or annually and can access your account online only.
Another market leader, AXIS Bank offers 1.25% interest on deposits between £1,000 and £200,000. Interest can be paid monthly, quarterly or yearly. There is no internet banking facility with this account, so you will need to visit a branch or place a request via post to access your account.
Good to know
- Axis offer the option to automatically rollover your balance, or the balance plus interest earned, for another year when the bond reaches maturity.
Aldermore Bank won Best Online Savings Account Provider at the Your Money Awards 2014. They require a minimum deposit of £1,000 and in exchange you can earn interest of 1.50%. You can access your account online, by phone or through the post.
Good to know
- One of Aldermore’s main selling point is how fast and easy it is to create an account. They allow you to complete the process online, including all identity checks, within minutes.
Other fixed rate bonds
If you are not planning on using your money in the near future, you may want to consider 2 year, 3 year or 5 year fixed rate bonds as these can provide a better rate of interest. However, these longer term bonds will increase the length of time during which you cannot access your savings.
Find 1 Year Fixed Rate Bond Best Buys
Getting the best deals on 1 year fixed rate bonds can be confusing, but there are some fantastic opportunities out there if you can find them. Make sure to shop around and you should be able to find an account that matches your specific needs while offering a good return.