What are the best savings accounts in the UK?

As a result of recent price increases, it is imperative that we have an affordable savings plan. Savings accounts in banks are one of the easiest ways to save. Basically, a savings account is our way of saving money which will be held in a bank or financial institution for a specific period of time and then provided with interest. Despite their modest interest rates, these accounts are ideal for storing short-term cash because of their safety and reliability. In this post, our experts list five best saving accounts fixed for a year in different British banks.

Best saving accounts fixed for 12 months in the UK

1. HSBC Regular Saver

Interest rate: 1.00% AER (1.00% Gross)

Balance: All balances

Deposits: deposits of £25 or £250

The Regular Saver in HSBC helps you grow your money as you set aside extra cash every month. The interest rate is fixed for 12 months at 1.00% and you can save up to £3,000 with it. Save from as little as $25. Pay between £25 and £250 into your Regular Saver each month with a standing order from your HSBC account. You can carry over your allowance (up to £3,000) if your regular payments are less than £250 a month.Make sure you save for a year. It’s not possible to make partial withdrawals during the 12-month period in order to take advantage of the rate on this account. The Flexible Saver rate will apply to you if you close your account early.

2. Club Lloyds Monthly Saver of Lloyds Bank

Interest rate: Earn 1.25% gross/AER fixed on balances of £1 or more for 12 months

Balance: All balances

Deposits: Save £25 – £250 every month

A Club Lloyds Monthly Saver account with Lloyds Bank allows you to save £25 – £250 every month. It must reach your account by the 25th of the month. Upon receiving interest for 12 months, the account will change to a Standard Saver account.

3. Fixed Rate ISA of NatWest Group

Interest rate: 1.30% 1 year term AER/Gross p.a. (fixed)

Balance: All balances (Tax-free interest on balances up to £20,000)

Deposits: £1,000 min. deposit

The NatWest Group’s Fixed Rate ISA offers you the opportunity to earn interest tax-free and fix your rate for one year. In addition to being tax-free, interest is paid directly to your account, allowing your savings to grow faster.

4. Blue Rewards Saver of Barclays Bank

Interest rate: 1.26% AER/1.25 gross per year in months with no withdrawals

Minimum balance: £1

Barclays Bank’s Blue Rewards Saver earns 1.26% AER/1.25% gross per year when you do not withdraw money. You should be aware that this product may not be right for you if you plan to make more regular monthly withdrawals. During the months when you withdraw one or more funds, you can only have 0.15% gross/AER. 

5. 1 Year Fixed Rate Bond of Nationwide Building Society

Interest rate: 2.75% AER/gross a year (fixed)

Minimum balance: £1

One of the best saving accounts is 1 Year Fixed Rate Bond of Nationwide Building Society. Interest is paid on Nationwide Building Society’s 1 Year Fixed Rate Bond at the end of the day before the anniversary of account opening, at the end of the fixed term, and on the close of the account. Interest can be paid in a variety of ways.

Comparison of top 5 1-Year Fixed Saving Accounts in the UK

This table clearly demonstrates that 1 Year Fixed Rate Bond of Nationwide Building Society has the best 1-Year Fixed Savings account with the highest interest rate of 2.75% AER/gross a year. Second with a wide margin is NatWest Group’s Fixed Rate ISA with 1.3% AER/gross a year, followed by Barclays Bank’s Blue Rewards Saver and Lloyds Bank’s Club Lloyds Monthly Saver with about the same interest rate. Lastly and most surprising, HSBC has the lowest interest rate for its HSBC Regular Savings account.

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