Best fixed rate savings accounts include products paying 6.11 per cent interest rate for one year

Savings interest rates offered by banks and building societies have been improving in recent months

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Jessica Sheldon

By Jessica Sheldon


Published: 16/10/2023

- 16:01

Fixed rate savings accounts can offer better rates of interest than easy access options would do, although savers usually can’t withdraw the funds during the period

Savings interest rates offered by banks and building societies have been improving in recent months, following 14 consecutive base rate hikes.

The Bank of England voted to maintain the bank rate at 5.25 per cent last month, with some speculating it could mean fewer increases to savings accounts could be seen soon.

Myron Jobson, senior personal finance analyst at interactive investor, said: “Savers might not experience another uptick in the interest applied to cash stashed in savings – although some banks and building societies might not be done with passing on previous rate rises, having been slow off the mark to do so.”

Those happy not to touch their savings for 12 months may decide a one-year fixed bond is right for them.

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Withdrawals aren’t allowed in most cases with fixed rate savings accounts

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Withdrawals aren’t allowed in most cases with these accounts, although some may allow access with an interest penalty.

According to the money comparison website Moneyfactscompare.co.uk, the highest paying interest rate on a one-year fixed rate account is currently more than six per cent AER.

Union Bank of India (UK) Ltd’s Fixed Rate Deposit pays 6.11 per cent on this account.

The minimum opening amount is £1,000 while the maximum investment is £1,000,000.

The Union Bank of India (UK) Ltd’s Union Premier Bond also pays 6.11 per cent, but the minimum opening amount is £5,000 while this upper limit is £340,000.

Ahli United Bank (UK) plc offers a 6.10 per cent AER rate via Raisin UK with the 1 Year Fixed Term Deposit.

The minimum opening amount is £1,000 and the maximum is £85,000.

Habib Bank Zurich plc pays 6.03 per cent via the HBZ Fixed Rate eDeposit, and the expected rate for the bank’s HBZ Sirat eDeposit (Fixed Term Account) is 6.03 per cent.

The minimum opening amount is £5,000 for both products.

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Bank of England base rate graph showing bank rate from 2017 to 2023

The Bank of England base rate has increased 14 consecutive times but was held for the first time in nearly two years last month

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Best interest rates on one-year fixed rate bonds

  • Union Bank of India (UK) Ltd Fixed Rate Deposit – 6.11 per cent
  • Union Bank of India (UK) Ltd Union Premier Bond – 6.11 per cent
  • Ahli United Bank (UK) plc Raisin UK - 1 Year Fixed Term Deposit – 6.10 per cent
  • Habib Bank Zurich plc HBZ Fixed Rate eDeposit – 6.03 per cent
  • Habib Bank Zurich plc HBZ Sirat eDeposit (Fixed Term Account) – expected rate of 6.03 per cent
  • LHV Bank Raisin UK - 1 Year Fixed Term Deposit – six per cent
  • Ziraat Bank Raisin UK - 1 Year Fixed Term Deposit – six per cent
  • Al Rayan Bank 12 Month Fixed Term Deposit – expected rate of 5.95 per cent
  • Castle Trust Bank Fixed Rate e-Saver – 5.95 per cent
  • Close Brothers Savings 1 Year Fixed Rate Bond – 5.95 per cent
  • Cynergy Bank Fixed Rate Bond – 5.95 per cent
  • Ford Money Fixed Saver 1 Year – 5.95 per cent

Data according to moneyfactscompare.co.uk, correct at the time of writing.

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