Which 1 year fixed savings account would you open TODAY?

What_time_is_it

With the rates being offered seemingly having peaked, and many offers becoming NLA, I think I need to lock away some savings in a 1 year fix. But which one?

I'll be maxing my ISA contributions as soon as we go into the go into the new tax year, and I am already making overpayments into my pension, so really just looking for a 1 year fix savings account to stash away about £50k.

Thanks.

ColdIron

You could have a look here

https://moneyfactscompare.co.uk/savings-accounts/1-year-fixed-rate-bonds/?quick-links-first=false

What_time_is_it

Thanks @ColdIron

Secure Trust Bank's 1 year fixed rate bond at 5.25% is top of that list. But it is not in the MSE list?
Any idea why that is?

BooJewels

I've just taken one with Charter Savings Bank @ 5.21 AER and 5.09 paid away monthly - as that's my preference and not all fixes do that.  

ETA:  I already had one with Charter, so opening another was just easier than shopping around for only a tiny potential gain.

What_time_is_it

BooJewels said:

I've just taken one with Charter Savings Bank @ 5.21 AER and 5.09 paid away monthly - as that's my preference and not all fixes do that.

Does taking it monthly give you the same total interest over the year as taking it annually? I'm always confused by the monthly vs annual interest thing!

Murielson

BooJewels said:

I've just taken one with Charter Savings Bank @ 5.21 AER and 5.09 paid away monthly - as that's my preference and not all fixes do that.  

ETA:  I already had one with Charter, so opening another was just easier than shopping around for only a tiny potential gain.

Me too, seemed best around including access via online portal

ColdIron

What_time_is_it said:

BooJewels said:

I've just taken one with Charter Savings Bank @ 5.21 AER and 5.09 paid away monthly - as that's my preference and not all fixes do that.

Does taking it monthly give you the same total interest over the year as taking it annually? I'm always confused by the monthly vs annual interest thing!

If it's left in the account to compound then yes, if you pay it away like BooJewels then no (because it won't compound)

Read about AER here

https://www.moneysavingexpert.com/banking/interest-rates/#AER

Of course there isn't much point in taking monthly payments just to leave it in the account unless you like to see it tick up so not all banks offer it

BooJewels

What_time_is_it said:

BooJewels said:

I've just taken one with Charter Savings Bank @ 5.21 AER and 5.09 paid away monthly - as that's my preference and not all fixes do that.

Does taking it monthly give you the same total interest over the year as taking it annually? I'm always confused by the monthly vs annual interest thing!

Only if you leave it in the fix to compound, as @ColdIron explained.   I prefer it paid away for a multitude of reasons - largely because it allows me to choose what to do with it - some I add to a regular saver at 7.5%.  Plus, I'm impatient so like to see it as I go along.  If you put your £50k in it and took monthly interest paid away, you'd get a monthly average of £212.08 = £2,545 for the year.  If you left it to compound, you'd get £2,605, so £60 more, as a reward for your patience.  Tax might be a consideration too, if you want to time when you receive the funds.

EthicsGradient

What_time_is_it said:

Thanks @ColdIron

Secure Trust Bank's 1 year fixed rate bond at 5.25% is top of that list. But it is not in the MSE list?
Any idea why that is?

It is there now; but note that it matures on 9th May 2025, whenever you open it (and it seems it will pay its first chunk of interest on 31st Dec 2024 - out to a current account, if you want, or compounded in the account), if that does or does not fit what you want

What_time_is_it

EthicsGradient said:

What_time_is_it said:

Thanks @ColdIron

Secure Trust Bank's 1 year fixed rate bond at 5.25% is top of that list. But it is not in the MSE list?
Any idea why that is?

It is there now; but note that it matures on 9th May 2025, whenever you open it (and it seems it will pay its first chunk of interest on 31st Dec 2024 - out to a current account, if you want, or compounded in the account), if that does or does not fit what you want

That actually sounds like a decent deal. 5.25% for 13.5 months. Interest compounded and paid out partially in 24/25, and partially in 25/26.
Sounds good to me. But what's the catch? I've never heard of this bank before!

TheBanker

What_time_is_it said:

EthicsGradient said:

What_time_is_it said:

Thanks @ColdIron

Secure Trust Bank's 1 year fixed rate bond at 5.25% is top of that list. But it is not in the MSE list?
Any idea why that is?

It is there now; but note that it matures on 9th May 2025, whenever you open it (and it seems it will pay its first chunk of interest on 31st Dec 2024 - out to a current account, if you want, or compounded in the account), if that does or does not fit what you want

That actually sounds like a decent deal. 5.25% for 13.5 months. Interest compounded and paid out partially in 24/25, and partially in 25/26.
Sounds good to me. But what's the catch? I've never heard of this bank before!

No catch - they are a well established, fully authorised and regulated UK bank, so covered by the FOS and the FSCS.