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Our favourite 1 year fixed rate savings accounts

If you’re looking for a way to kick start or boost your nest egg, one good method is to lock your money away in a fixed rate savings account.

These accounts, often referred to as bonds, are guaranteed to pay a fixed amount of interest for a specific length of time. They normally require the saver to deposit one lump sum as opposed to making regular payments.

Various terms are offered by banks and building societies, usually from one to three years. As a rule, you are not allowed to withdraw any funds during the fixed term period.

If you think you might need the money sooner rather than later, it’s probably best to opt for one of the 1 year savings accounts. That way, if a more attractive interest rate becomes available you can transfer your money to another product.

Here is our pick of 1 year fixed rate savings accounts on the market.

Yorkshire Building Society fixed rate e-bond – As the title suggests, this is a web based saver, which pays interest either monthly, or at the end of the term, at 3.45 per cent Annual Equivalent Rate. You can deposit any amount from £1,000 up to £2 million.

The Co-operative Bank fixed term deposit – In this account, you can save anything from £2,000 up to £1 million. The interest rate is 3.4 per cent when the bond matures after 12 months, or you can choose monthly interest of 3.39 per cent AER.

Post Office online bond – This bond is also managed via the internet and pays 3.41 per cent AER interest at the end of the term, or monthly. Savers must be able to deposit at least £500 into the account and can save up to £2 million.

 

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