Fixed Rate Savings
What is a fixed rate savings account?
A fixed rate savings account locks in your interest rate (the percentage a bank pays you) for a set period. Usually 1 to 5 years. The rate won’t change during that time, no matter what happens to interest rates elsewhere. This is called a fixed rate.
What’s the catch?
You can’t withdraw your money until the term ends. If you need it early, you’ll usually lose some or all of the interest you’ve earned. Some accounts don’t allow early access at all.
Why choose a fixed rate?
You’ll usually earn more interest than an easy access account (where you can withdraw anytime). And you know exactly what you’ll get. The rate is guaranteed.
If interest rates fall while your money is locked away, you’ll be earning more than people opening new accounts. If rates rise, you’ll be stuck with the lower rate.
How long should you fix for?
Only fix money you definitely won’t need. One year is common. Longer terms sometimes pay more, but you’re betting that rates won’t rise significantly.
Check the AER (Annual Equivalent Rate) to compare. This shows what you’d earn over a full year, making it easy to compare accounts with different terms.
What about a notice account?
A notice account sits between easy access and fixed rate. You tell the bank before withdrawing (usually 30-120 days), but you’re not locked in for years.
Scrimpr tracks savings rates daily across UK banks and building societies.
Compare Savings Rates →Key points about fixed rate savings
- Interest rate is guaranteed for the full term
- Money is locked away. You can’t withdraw without penalty
- Usually pays more than easy access or notice accounts
- Only use for money you definitely won’t need
More information
Scrimpr links to official sources so you can verify what you’ve learned.