Opening a 1 year fixed-rate savings account means knowing exactly how much interest you’ll earn – there’s no guesswork involved. So you can set it up, sit back, and watch your savings blossom.
1 year fixed-rate savings accounts are a type of savings account where you deposit money upfront over an agreed period – in this case, one year.
The interest rate stays the same (it’s fixed) for 1 year, offering stability for savers. 1 year fixed-rate savings bonds are ideal if you want to invest a lump sum, letting you know how much interest you’ll rack up from the start.
Once you’ve committed to a 1 year fixed-rate bond, you can’t withdraw money until the 1 year is up. So be sure to plan, and don’t deposit any savings you might need within the year.
At the end of the 1 year (the account’s maturity), the interest rate you agreed on is added to your balance. You then have the option to withdraw your money (including the interest) or choose a new fixed-term bond and move your money there. It’s your call.
The Financial Services Compensation Scheme (FSCS) is the UK’s deposit protection scheme, protecting deposits up to £120,000. Joint accounts are eligible for FSCS protection up to the same limit of £120,000 per eligible person.
All UK banks available on the Saga Savings Platform offer FSCS protection.
You don’t need to do anything, as the FSCS will compensate you automatically and is paid within 7 working days if a bank fails. You can learn more on the FSCS website.
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