Why we like it: Interest paid on maturity. Automatic repayment to your linked account. Maximum deposit £250,000. FSCS Protected. Must have a UK residential address and be aged 18 or older. No withdrawals permitted
Why we like it: Interest paid at maturity. Recommended Which? Provider. With Starling, your money is covered to £85,000 by the FSCS across all accounts. All Starling accounts managed from one app. Must be UK resident and aged 18 or older. No withdrawals permitted. Maximum deposit £1,000,000. To open a 1-Year Fixed Saver, you’ll need to have a Starling current account
Why we like it: Which? Recommended Savings Provider. Save from £1,000 to £250,000. No withdrawals before the end of the term. Your eligible deposits with RCI Bank UK Limited are protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS)
Why we like it: Interest paid annually. Open online, in branch or by post. FSCS Protected. Must be UK resident and be aged 18 or older. No withdrawals permitted
Why we like it: Interest paid at maturity. Open in single or joint name. Maximum deposit £5,000,000. Open and manage online. FSCS Protected. Must be UK resident and be aged 16 or older. No withdrawals permitted
Why we like it: Register for a free Raisin UK Account to apply for product. Interest paid on maturity. Maximum deposit £85,000. FSCS Protected. Must be UK resident and aged 18 or older. No withdrawals permitted
Why we like it: Interest paid at maturity. Open in a single or a joint name. Maximum deposit £250,000. FSCS Protected. Winner of Platinum Feefo Trusted Service Award in 2021. Must be UK resident and be aged 18 or older. No withdrawals permitted
Why we like it: Interest paid at maturity. Open in a single or a joint name. Maximum deposit £250,000. FSCS Protected. Winner of Platinum Feefo Trusted Service Award in 2021. Must be UK resident and be aged 18 or older. No withdrawals permitted
Right now, there are some savings accounts on the market that offer competitive rates of interest on smaller amounts of money. For example, Hampshire Trust Bank currently offers5.15% on their Instant Access Account.
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.
12 month 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 12 month fixed rate bonds
We have selected some of the most attractive 12 month fixed rate bonds currently on offer below. The rates of interest they offer change regularly, so please see the table above for the latest rates.
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 12 Month Fixed Rate Bond Best Buys
Getting the best deals on 12 month 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.
Fixed Rate Bond Alternatives
Fixed Income Plan
6.48% per year fixed, quarterly payments, for full 4 year term…
Fixed monthly income: 0.54% (equivalent to 6.48% annually)
Income paid monthly for full 4 year term of the plan, regardless of the FTSE 100 performance
Capital at risk product - 65% barrier
Available for stocks and shares ISAs, ISA Transfers & direct investments. Also available to businesses, charities, trusts & SIPP and SSAS pension schemes
Important Information: This is a structured investment plan which is not capital protected and is not covered by the Financial Services Compensation Scheme (FSCS) for default alone. There is a risk of losing some or all of your initial investment due to the performance of the underlying investment. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.
