The latest one-year savings rates are good news for savers, with the average rate showing an increase of 0.5%
Fixed-rate accounts up
Banks and building societies have been increasing rates on their long-term savings accounts over the past year, providing some good news for savers after almost three years of rock bottom savings rates.
The average one-year fixed-rate savings accounts are now paying about 0.5 percentage points more than they were a year ago. So, if you saved £10,000 in a one-year fixed account from Skipton BS today, you would earn £345 in interest before tax; a rate of 3.45%.
This time last year, however, the best one-year fixed account (from Aldermore) was paying just 3.01%, which would have paid you just £301 in interest on £10,000 saved.
Get more from your Savings
The news follows on from Leeds Building Societies’ recent announcement of two new one-year savings products that immediately top the Best Rate tables.The 1 Year Fixed Rate Bond (Issue 95) pays a rate of 3.46% AER and allows savers to invest up to £5,000 (or £10,000 for a joint account).
For Isa savers, there’s the new 1 Year Fixed Rate Isa (Issue 25) paying 3.25% AER tax-free. The Isa allows you to withdraw up to 25% of your investment without notice or loss of interest.
You can take a look at our tables to find the best fixed-rate account out there. Which? analyses the whole savings account market to find the best accounts. And for help with finding the best savings account follow the advice in our dedicated guide
- 60 second guide to choosing a savings account – all you need to know about different savings accounts
- Which? Best Rate one-year Isas – marketing-leading fixed-rate Isas
- Best Rate one-year fixed-rate savings accounts – all the Best Rates on one-year accounts