Compare 1 Year Fixed Rate Bonds
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:
Compare bonds using our comparison service to make the most of your money - finding the best rate can make a real difference to the interest you earn, so it's worth taking a minute to compare the latest deals from leading providers.
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 of Fixed Rate Bonds
- 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 of Fixed Rate Bonds
- 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