Best fixed rate savings accounts in the UK

Who is offering the best fixed rate ISA?

It depends on how long you want to lock away your money for. For a 1 year term, Tembo offers the market-leading rate of 4.27% AER (fixed). Plus, you can add more funds later on, locked in fo 12 months fom the date they are added, at the rate available at the time. This rate also beats the top rates offered on current 2 year, 3 year and 5 year fixed rate ISAs.

Best 1-year fixed rate savings accounts

Tembo

Rate: 4.27% AER fixed

Interest paid: At maturity

Minimum/maximum deposit: £500

Penalty to withdraw: 90 days' interest

Can you add more funds later on? Yes

NatWest

Rate: 4.2% AER fixed

Interest paid: At maturity

Minimum/maximum deposit: £1,000

Penalty to withdraw: 90 days' interest

Can you add more funds later on? No

Zopa

Rate: 4.17% AER fixed

Interest paid: At maturity

Minimum/maximum deposit: £1

Penalty to withdraw: 90 days' interest

Can you add more funds later on? No

Best 2-year fixed rate savings accounts

Bath Building Society

Rate: 4.15%

Interest paid: At maturity

Minimum/maximum deposit: £1

Penalty to withdraw: 180 days' interest

Can you add more funds later on? No

UBL UK

Rate: 4.11%

Interest paid: Monthly, quarterly, annually or at maturity

Minimum/maximum deposit: £2,000

Penalty to withdraw: 180 days' interest

Can you add more funds later on? No

Cynergy

Rate: 4.1%

Interest paid: At maturity

Minimum/maximum deposit: £500

Penalty to withdraw: 180 days' interest

Can you add more funds later on? No

Best 3-year fixed rate savings accounts

UBL UK

Rate: 4.19%

Interest paid: Monthly, quarterly, annually or at maturity

Minimum/maximum deposit: £2,000

Penalty to withdraw: 270 days' interest

Can you add more funds later on? No

Cynergy

Rate: 4.1%

Interest paid: At maturity

Minimum/maximum deposit: £500

Penalty to withdraw: 180 days' interest

Can you add more funds later on? No

Close brothers

Rate: 4.09%

Interest paid: At maturity

Minimum/maximum deposit: £10,000

Penalty to withdraw: 270 days' interest

Can you add more funds later on? No

Best 5-year fixed rate savings accounts

UBL UK

Rate: 4.22%

Interest paid: Monthly, quarterly, annually or at maturity

Minimum/maximum deposit: £2,000

Penalty to withdraw: 365 days' interest

Can you add more funds later on? No

Hampshire Trust Bank

Rate: 4.2%

Interest paid: Annually or at maturity

Minimum/maximum deposit: £1

Penalty to withdraw: 450 days' interest

Can you add more funds later on? No

Castle Trust Bank

Rate: 4.16%

Interest paid: At maturity

Minimum/maximum deposit: £1,000

Penalty to withdraw: 360 days' interest

Can you add more funds later on? No

Learn more: How many Fixed Rate ISAs can I have?

Are fixed-rate ISAs worth it now?

Fixed Rate ISAs can be a good idea if you want a guaranteed interest rate and are comfortable locking away your money for a number of years. The main advantage is the higher interest rates they often offer compared to easy-access ISAs, making them ideal for long-term saving

Should I get a 1 year or 2 year fixed rate ISA?

A 1-year fixed rate ISA could be a smart choice if you’re looking for quicker access to your funds or want to benefit from potentially higher rates over a shorter term. In some cases, 1-year options may even offer better rates than 2-year fixed ISAs, such as the Tembo Fixed Rate ISA offering 4.27% AER (fixed). On the other hand, a 2-year fixed rate ISA is ideal if you’re seeking a guaranteed return over a longer period and are confident you won’t need to access your money. Longer terms often provide a more competitive interest rate overall.

To make the best decision, consider your financial goals, your need for flexibility, and compare current rates across providers. With a Tembo Fixed Rate ISA, you can add more funds later on, which will lock in for 12 months from the date they’re added, at the rate available at the time. Allowing you to benefit from our market-leading 4.27% AER (fixed) rate today, with flexibility to add more money further down the line.

Is it better to get interest paid monthly or annually on a fixed rate ISA?

Annual interest accounts can help you grow your savings faster by keeping the interest in your account, allowing you to earn interest on your interest; this is known as compound interest. Monthly interest accounts, on the other hand, offer flexibility, as you may have the option to have the interest paid into the same account or transferred to a separate bank account.