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 Do you know how safe your savings are? Should you choose a fixed rate or a bonus rate? Our useful savings guides could help you to make the most of your money.
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Latest savings commentary

Inflation all wrapped up

Oliver Roylance-Smith / 01 February 2012

Recent weeks have provided confirmation of the interest rate status quo from the Bank of England along with the release of the latest inflation figures from the Office for National Statistics. Combi... Read more

Savings vs Inflation

Oliver Roylance-Smith / 29 November 2011

With so much uncertainty surrounding what will happen to inflation in the future, we review the current range of savings plans and see how their returns stack up against the rising cost of living. F... Read more

What will happen to inflation

Oliver Roylance-Smith / 15 November 2011

With the spotlight well and truly on inflation, we take a look at the latest events that will have an impact on its future and consider what this might mean for savers. Bank of England holds firm Th... Read more

Latest banking news

Inflation all wrapped up

Oliver Roylance-Smith / 01 February 2012

Recent weeks have provided confirmation of the interest rate status quo from the Bank of England along with the release of the latest inflation figures from the Office for National Statistics. Combi... Read more

Inflation and interest rates - what it means for you

Oliver Roylance-Smith / 01 February 2012

In the last fortnight we have had a further vote on the base rate by the Bank of England’s Monetary Policy Committee as well as the revised inflation figures released by the Office for Nationa... Read more

Savings vs Inflation

Oliver Roylance-Smith / 29 November 2011

With so much uncertainty surrounding what will happen to inflation in the future, we review the current range of savings plans and see how their returns stack up against the rising cost of living. F... Read more

Latest investment commentary

What lies in store in 2012

Oliver Roylance-Smith / 10 January 2012

2011 has certainly been a year of strong themes which have dramatically shaped the market as well as the opportunities available for savers and investors. We take a look at what these have been and ... Read more

A review of the FTSE in 2011 and what we can learn

Oliver Roylance-Smith / 10 January 2012

The FTSE is one of the most important indicators of investment performance and acts as a key benchmark for many investors in the UK. For this reason we take a look back at 2011 and review what happe... Read more

Our Top 10 most popular plans in 2011

Oliver Roylance-Smith / 09 January 2012

With 2012 well underway, there is already a competitive range of plans available across a wide number of plan types, whether you are looking for traditional savings routes, investments with the pote... Read more

1 Year Fixed Rate Bonds

Compare Latest 1 Year Fixed Rate Bond Deals

A 1 year fixed rate bond agreement may be useful for savers who wish to see a guaranteed return on their savings over a fixed period of time, usually from 1-5 years. It is recommended that you shop around for fixed rate bonds in order to find the most competitive offers available. We've made it easy to find the right 1 year fixed rate bond for you by bringing some of the latest deals together - see below to compare rates and other features and apply online:

 

1 Year Fixed Rate Bonds
ProviderAccountInterest Rate (AER)TermApply
3.60%1 YearApply Now >
3.60% Gross/AER fixed for 1 year. Deposit from £1,000. No maximum deposit.
3.30%1 YearApply Now >
Earn 3.30% gross/AER fixed for 1 year. £2,000 minimum deposit. Penalty for withdrawal before the end of the term. Interest paid monthly or on maturity.
3.20%1 YearApply Now >
3.00% Gross/AER on balances of £5,000 - £24,999. 3.20% on balances of £25,000 - £500,000. Existing customers only. Deposit £5,000 - £500,000. No withdrawals or additional deposits.
3.20%1 YearApply Now >
3.00% Gross/AER on balances of £5,000 - £24,999. 3.20% on balances of £25,000 - £500,000. Existing customers only. Deposit £5,000 - £500,000. No withdrawals or additional deposits.
up to
2.90%		1 YearApply Now >
Earn 2.90% Gross/AER when you save £50,000 or more. Earn 2.65% on balances from £1-£49,999.
2.25%1 YearApply Now >
2.25% Gross/AER fixed for 1 year. No additional deposits or withdrawals. Enter the Halifax Savers Prize Draw for a chance to win £100,000 or one of a thousand smaller prizes.
Fixed Rate Bond Selection
ProviderAccountInterest Rate (AER)TermApply
4.60%5 YearsApply Now >
Interest paid either Annually at 4.60% Gross/AER, Quarterly at 4.52% Gross or Monthly at 4.50% Gross. Minimum Deposit £10,000.
4.00%3 YearsApply Now >
Interest paid annually at 4.00% (gross), quarterly at 3.94% (gross), or monthly at 3.93% (gross). Minimum Deposit £10,000.
3.60%1 YearApply Now >
3.60% Gross/AER fixed for 1 year. Deposit from £1,000. No maximum deposit.
Short Term Fixed Rate Bonds (0-2 years)
ProviderAccountInterest Rate (AER)TermApply
3.75%2 YearsApply Now >
3.75% Gross/AER fixed for 2 years. No additional deposits or withdrawals. Enter the Halifax Savers Prize Draw for a chance to win £100,000 or one of a thousand smaller prizes.
3.70%2 YearsApply Now >
3.40% Gross/AER on balances of £5,000 - £24,999. 3.70% on balances of £25,000 - £500,000. Existing Customers Only. No withdrawals or additional deposits.
3.70%2 YearsApply Now >
3.40% Gross/AER on balances of £5,000 - £24,999. 3.70% on balances of £25,000 - £500,000. Existing customers only. No withdrawals or additional deposits.
3.60%1 YearApply Now >
3.60% Gross/AER fixed for 1 year. Deposit from £1,000. No maximum deposit.
3.50%2 YearApply Now >
Earn 3.50% gross/AER fixed for 2 years. £2,000 minimum deposit. Penalty for withdrawal before the end of the term. Interest paid monthly or on maturity.
3.30%1 YearApply Now >
Earn 3.30% gross/AER fixed for 1 year. £2,000 minimum deposit. Penalty for withdrawal before the end of the term. Interest paid monthly or on maturity.
3.28%6 MonthsApply Now >
3.28% AER fixed for 6 months. Deposit from £1,000. No maximum deposit.
3.20%1 YearApply Now >
3.00% Gross/AER on balances of £5,000 - £24,999. 3.20% on balances of £25,000 - £500,000. Existing customers only. Deposit £5,000 - £500,000. No withdrawals or additional deposits.
3.20%1 YearApply Now >
3.00% Gross/AER on balances of £5,000 - £24,999. 3.20% on balances of £25,000 - £500,000. Existing customers only. Deposit £5,000 - £500,000. No withdrawals or additional deposits.
up to
2.90%		1 YearApply Now >
Earn 2.90% Gross/AER when you save £50,000 or more. Earn 2.65% on balances from £1-£49,999.
2.80%18 MonthsApply Now >
18 Month Fixed Rate - 2.80% AER. Open to new and existing customers. Click to learn more.
up to
2.41%		6 MonthsApply Now >
Earn 2.41% Goss/AER fixed on balances of £50,000 or more. 2.16% Gross/AER fixed on balances of £1-£49,999
2.50%9 MonthsApply Now >
9 Month Fixed Rate - 2.50% AER. Open to new and existing customers.
2.25%1 YearApply Now >
2.25% Gross/AER fixed for 1 year. No additional deposits or withdrawals. Enter the Halifax Savers Prize Draw for a chance to win £100,000 or one of a thousand smaller prizes.
   
Medium Term Fixed Rate Bonds (3-4 years)
ProviderAccountInterest Rate (AER)TermApply
4.00%3 YearsApply Now >
Interest paid annually at 4.00% (gross), quarterly at 3.94% (gross), or monthly at 3.93% (gross). Minimum Deposit £10,000.
3.60%3 YearsApply Now >
Earn 3.60% gross/AER fixed for 3 years. £2,000 minimum deposit. Penalty for withdrawal before the end of the term. Interest paid monthly, annually, or on maturity.
Long Term Fixed Rate Bonds (4+ years)
ProviderAccountInterest Rate (AER)TermApply
4.60%5 YearsApply Now >
Interest paid either Annually at 4.60% Gross/AER, Quarterly at 4.52% Gross or Monthly at 4.50% Gross. Minimum Deposit £10,000.
4.25%5 YearsApply Now >
4.25% Gross/AER fixed for 5 years. No additional deposits or withdrawals. Enter the Halifax Savers Prize Draw for a chance to win £100,000 or one of a thousand smaller prizes.
4.15%4 YearsApply Now >
4.15% Gross/AER fixed for 4 years. No additional deposits or withdrawals. Enter the Halifax Savers Prize Draw for a chance to win £100,000 or one of a thousand smaller prizes.
Alternatives to Fixed Rate Bonds
ProviderPlan NameDeposit TakerISA OptionTermMaximum Potential ReturnMore Info
Inflation Protected Deposit BondRoyal Bank of Scotland plcyes5 yearsRPI Tracker More Info >
  • 5 year structured deposit plan
  • Capital protected
  • 100% any growth in RPI (no cap) with a minimum return of 16%
  • Available as a Cash ISA & for ISA transfers
  • Also available to businesses, charities and trusts
  • Plan designed to be held for full term
  • May close early if oversubscribed
FTSE 100 3 Year Deposit Plan Investec Bank plcyes3 years19%More Info >
  • 3 year structured deposit plan
  • Capital protected
  • Target return of 19%
  • Available as a Cash ISA & for ISA transfers
  • Also available to businesses, charities and trusts
  • Plan designed to be held for full term
  • May close early if oversubscribed
FTSE 100 Kick Out Deposit Plan - Option 2Investec Bank plcyesUp to
5 years		6.25%
per annum		More Info >
  • 5 year structured deposit plan
  • Capital protected
  • Potential for early maturity after years 2,3 and 4
  • Available as a Cash ISA & for ISA transfers
  • Also available to businesses, charities and trusts
  • Plan designed to be held for full term
  • May close early if oversubscribed
FTSE 100 Kick Out Deposit Plan - Option 1Investec Bank plcyesUp to
5 years		6.00%
per annum		More Info >
  • 5 year structured deposit plan
  • Capital protected
  • Potential for early maturity after years 1,2,3 and 4
  • Available as a Cash ISA & for ISA transfers
  • Also available to businesses, charities and trusts
  • Plan designed to be held for full term
  • May close early if oversubscribed
MoneybuilderBarclays plcyes6 years5.75%
per annum		More Info >
  • 6 year structured deposit plan
  • Capital protected
  • 5.75% potential annual growth
  • Also available to businesses, charities and trusts
  • Plan designed to be held for full term
  • May close early if oversubscribed
FTSE 100 Deposit Growth PlanInvestec Bank plcyes5 yearsNo limitMore Info >
  • 5 year structured deposit plan
  • Capital protected
  • Potential to return 1 x FTSE 100 growth
  • Available as a Cash ISA & for ISA transfers
  • Also available to businesses, charities and trusts
  • Plan designed to be held for full term
  • May close early if oversubscribed
Growth Deposit BondRoyal Bank of Scotland plcyes6 years50%More Info >
  • 6 year structured deposit plan
  • Capital protected
  • Target return of 8.00% or if greater 1 x any FTSE 100 growth (capped at 50%)
  • Available as a Cash ISA & for ISA transfers
  • Also available to businesses, charities and trusts
  • Plan designed to be held for full term
  • May close early if oversubscribed
Enhanced Growth PlanSantander UK plcyes6 years40%More Info >
  • 6 year structured deposit plan
  • Capital protected
  • 5 x any rise in the FTSE 100 capped at 40%
  • Available as a Cash ISA & for Cash ISA transfers
  • Also available to businesses, charities and trusts
  • Plan designed to be held for full term
  • May close early if oversubscribed
Annual Locked-In Return PlanSantander UK plcyes6 years36%More Info >
  • 6 year structured deposit plan
  • Capital protected
  • 6% potential annual return
  • Available for Cash ISAs & Cash ISA transfers
  • Also available to businesses, charities and trusts
  • Plan designed to be held for full term
  • May close early if oversubscribed
FTSE Protected Growth Plan yes6 years35%More Info >
  • 6 year structured investment plan
  • Capital protected
  • Potential for early maturity growth return of 35%
  • Available for ISA transfers
  • Also available to businesses, charities and trusts
  • Plan designed to be held for full term
  • May close early if oversubscribed
Important Information: Structured deposits offer you the potential to earn higher returns than you would with a regular savings account. Your returns are based on the performance of an index or commodity. If the investment does not perform well you may receive no income or capital growth, but you can be confident that your capital will be repaid. You have no access to your deposit during the term of the account, typically 3 to 6 years but your original capital will be repaid in full at the end of the term. In the event that the deposit taker is unable to repay your initial investment and any returns stated you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS) depending on your individual circumstances.

Fixed Rate Bonds – Our view

 

What are 1 Year fixed rate bonds?

 

A 1 year fixed rate bond is a form of savings account which offer you a guaranteed interest payment over the fixed period of 12 months.

 

Advantages

  • The interest rate offered is guaranteed for 1 year. This is unlike instant access savings accounts where the interest rate can go down or up at short notice.
  • Different banks and building societies will have different views on short, medium to long term interest rates. If interest rates rise more slowly than expected a fixed rate bond may give you a better return than what you could expect from an instant access account.
  • Some fixed rate bonds provide flexibility e.g. 1 withdrawal over the term.
  • Fixed rate bonds range from 2 months to 5 years in duration so you can choose a term that suits your circumstances
  • Many fixed rate bond providers offer online access so you can see how much interest you are earning.

 

Disadvantages

  • The benefit of enjoying a higher rate of interest must be weighed against tying up your capital for a fixed term. If you need access to your capital before maturity this may not be possible and if it is there may be interest penalties.
  • If interest rates rise over the term of the investment you may find the interest rate on your capital is no longer competitive compared to new offerings in the market.
  • Many fixed rate bond providers require a high minimum deposit e.g. £5,000

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