1-year fixed deposits in 2026: See what the current rates are

For many households, a one-year fixed savings account sits between easy-access cash and longer lock-ins. It offers a set return for a defined term, which can make budgeting simpler when rates elsewhere are moving around. In the UK, these accounts are often marketed as fixed-rate bonds or fixed-term savers, and the details matter as much as the headline annual percentage yield.

How one-year fixed savings work

With a one-year term, you agree to leave money untouched for roughly 12 months in exchange for a fixed annual equivalent rate, or AER. The main trade-off is straightforward: better certainty than variable-rate savings, but less flexibility if you need the cash early. Some accounts do not allow withdrawals at all, while others may close the account early only in limited circumstances.

AER is useful because it helps compare products on a like-for-like basis, but it does not tell the whole story. You also need to check minimum deposit rules, whether interest is paid monthly or at maturity, and whether the provider allows joint accounts. In the UK, protection is also important: most banks and building societies are covered by the Financial Services Compensation Scheme up to the standard limits, while NS&I products are backed by HM Treasury.

What shapes interest rates today

The rates on one-year fixed accounts usually move in response to the wider savings market, the Bank of England base rate, competition between providers, and expectations about future borrowing costs. When lenders want retail deposits, rates often become more attractive. When they do not need as much funding, offers can fall even if the broader economy still feels expensive for households.

That is why there is rarely one single answer to what the current rate is. In practice, the UK market tends to form bands. Large high-street names may offer one level, digital banks another, and smaller specialist savings providers something slightly stronger in return for stricter account terms. A difference of even 0.25 percentage points can matter once your balance moves into the thousands.

Typical rate ranges in the UK market

Because providers reprice regularly, a static article cannot guarantee a live market-wide figure. A more useful way to read the market is by range. In recent UK savings conditions, one-year fixed accounts have often clustered in the mid-single-digit AER area, with stronger offers usually coming from specialist banks rather than everyday current-account brands. Live figures can move quickly, especially when providers withdraw and relaunch issues.

Prices, rates, or cost estimates mentioned in this article are based on the latest available information but may change over time. Independent research is advised before making financial decisions.

The table highlights a practical point: the “price” of this type of product is not normally a fee charged to the saver, but the opportunity cost of locking money away at one rate while the market keeps moving. A provider with a slightly lower AER may still suit someone who prefers a familiar institution, lower minimum opening balance, or stronger flexibility around account administration.

Real-world cost and access points

In real-world terms, the biggest cost question is usually not an account charge but what you give up in access and inflation protection. If inflation runs above your fixed rate, the real value of your cash growth is reduced even though your balance rises in pounds and pence. If rates rise after you open the account, your money could end up tied into a less competitive deal until maturity.

Early closure rules also matter. Some providers simply do not permit access before the term ends. Others may allow closure with a loss of interest, subject to terms and conditions. Savers should also consider tax. Interest may count toward the Personal Savings Allowance, and higher balances can create a tax consideration even when the advertised rate looks attractive. For larger sums, spreading money across authorised institutions can also help manage deposit protection limits.

How to compare one-year accounts well

A sensible comparison starts with four checks: AER, minimum deposit, access restrictions, and protection status. After that, look at how interest is paid and whether the account can be opened and managed in a way that suits you, whether that is app-only, online, postal, or branch-based. A competitive headline rate is less helpful if the application process or funding rules do not match how you save.

It is also worth comparing one-year accounts with easy-access and notice accounts at the same time. Sometimes the extra return for fixing money for 12 months is meaningful; sometimes the gap is narrow enough that flexibility has greater value. That comparison is especially relevant for emergency funds, which generally need accessibility more than yield certainty.

When a one-year term may fit

A one-year fixed account can make sense for money you know you will not need soon, especially if you want predictable interest and do not want to monitor the market every week. It can also suit savers building short-term goals such as a tax bill, school costs, or a planned purchase within the next year or two.

For people who may need immediate access, or who expect rates to rise materially and want to stay flexible, other savings options may be more appropriate. The most useful takeaway is that the current market should be read as a moving range rather than a single number. In the UK, strong one-year offers are usually found by comparing account terms, provider type, and protection rules together, not by looking at the rate alone.