Here are some examples of fixed-rate savings accounts currently available in the UK:
Al Rayan Bank Fixed Term Deposit:
This account offers a fixed rate of up to 1.55% AER (Annual Equivalent Rate) for a term of up to 24 months. The minimum deposit required is £1,000.
Shawbrook Bank 5-Year Fixed Rate Bond:
This account offers a fixed rate of 2.10% AER for a term of five years. The minimum deposit required is £1,000.
Ford Money Fixed Saver:
This account offers a fixed rate of up to 1.50% AER for a term of up to three years. The minimum deposit required is £500.
Gatehouse Bank Fixed Term Deposit:
This account offers a fixed rate of up to 1.70% AER for a term of up to five years. The minimum deposit required is £1,000.
Marcus by Goldman Sachs:
Offers a fixed rate of up to 1.45% AER for a term of up to five years with no fees or penalties for early withdrawals. The minimum deposit required is £1.
Atom Bank:
Offers a fixed rate of up to 1.70% AER for a term of up to five years with no fees or penalties for early withdrawals. The minimum deposit required is £50.
Zopa:
Offers a fixed rate of up to 1.55% AER for a term of up to five years with no fees or penalties for early withdrawals. The minimum deposit required is £1,000.
Aldermore Notice Savings Account:
Offers a variable interest rate of up to 0.90% AER with a notice period of 90 days. The minimum deposit required is £1,000.
Charter Savings Bank 120-Day Notice Account:
Offers a fixed interest rate of 1.15% AER with a notice period of 120 days. The minimum deposit required is £1,000.
Investec Notice Plus Account:
Offers a variable interest rate of up to 0.75% AER with a notice period of 95 days. The minimum deposit required is £25,000.
First Direct Regular Saver:
HSBC Regular Saver:
Offers a fixed interest rate of 2.75% AER for 12 months, with a maximum deposit of £250 per month. This account is available to HSBC current account holders only.
Nationwide Regular Saver:
Offers a variable interest rate of 1.50% AER for 12 months, with a maximum deposit of £250 per month. This account is available to Nationwide current account holders only.
Virgin Money Cash ISA:
Offers a variable interest rate of up to 0.50% AER with no minimum deposit or withdrawal restrictions.
Shawbrook Bank Cash ISA:
Offers a fixed interest rate of up to 1.30% AER for a term of up to five years, with a minimum deposit of £1,000.
Paragon Bank Cash ISA:
Offers a fixed interest rate of up to 0.65% AER for a term of up to five years, with a minimum deposit of £1,000.
Nationwide FlexDirect:
Offers a variable interest rate of 0.25% AER on balances up to £1,500 for the first 12 months, then 0.10% AER after that. This account also offers a fee-free overdraft for the first 12 months.
TSB Classic Plus:
Offers a variable interest rate of 0.15% AER on balances up to £1,500, as well as cashback on contactless spending.
Santander 123 Lite:
Offers a tiered interest rate of up to 0.60% AER on balances up to £20,000, as well as cashback on certain household bills.
Set a fixed-rate savings goal:
Determine how much you want to save and by when. This can help you stay motivated and on track with your savings plan.
Automate your fixed rate savings:
Set up a direct debit or standing order to transfer a portion of your income into your savings account each month. This can help you save consistently and avoid the temptation to spend money.
Compare fixed-rate savings accounts:
Research different savings accounts and compare interest rates, fees, and terms to find the best option for your needs.
Consider inflation to fixed rate savings:
Inflation can erode the value of your savings over time. Consider investing in assets that can help protect against inflation, such as stocks, bonds, or property.
The Impact of interest rates on financial markets
Review and adjust your strategy regularly:
Revisit your savings plan periodically to ensure it’s still aligned with your goals and adjust as needed.
Emergency funds of fixed rate savings:
Consider keeping some savings in an easily accessible account, such as a current account or instant access savings account, to cover unexpected expenses or emergencies.
Short-term vs long-term goals for fixed rate savings:
If you have short-term savings goals, such as a holiday or a down payment on a house, you may want to choose an account that allows easy access to your funds. If you’re saving for a longer-term goal, such as retirement, you may be willing to accept more withdrawal restrictions in exchange for a higher interest rate.
Early withdrawal penalties to fixed rate savings:
Some savings accounts may charge penalties for withdrawing funds before a certain date or term. Be sure to read the terms and conditions carefully and consider any potential penalties before opening a savings account.
Withdrawal limits to fixed rate savings:
Some savings accounts may limit the number of withdrawals you can make per month. If you anticipate needing frequent access to your savings, you may want to choose an account with more flexibility.
