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How savers in the UK can still earn attractive interest rates of up to 4.90% p.a. on fixed-rate savings accounts

Despite fluctuations in the Bank of England base rate, fixed-rate savings accounts remain a secure and reliable investment option for UK savers.

2 days ago | Richard van Brehm

“In times of economic uncertainty, it is wise to rely on stable and secure forms of investment. Fixed-rate savings accounts offer just that—security, predictable returns, and currently competitive interest rates.”

Fixed-rate savings accounts allow savers to lock in a fixed interest rate for a specific term, ensuring guaranteed returns. While funds cannot be withdrawn during the term, this trade-off provides peace of mind with predictable earnings at maturity.

Current Interest Rate Landscape in the UK

The Bank of England's base rate stands at 4.50% as of April 2025, following a period of adjustments aimed at stabilizing inflation. While variable savings rates have fluctuated, fixed-rate savings accounts continue to offer attractive returns.

For example:

  • HSBC Fixed Rate Saver provides up to 4.10% AER for one-year terms (£2,000 minimum deposit).
  • Santander Fixed Term Saver offers 4.05% AER for one year and 3.90% AER for two years (£500 minimum deposit).
  • Co-operative Bank Fixed Term Deposit features rates up to 4.15% AER for one year (£10,000 minimum deposit).
  • ​Flexibility in the choice of term: Fixed-rate savings accounts offer a variety of terms tailored to investors' individual needs and financial goals. Whether you want to invest your money for 6 months, 1 year or even 5.

These rates highlight the stability and competitiveness of fixed-rate savings options in the UK market.

Why Fixed-Rate Savings Accounts Are Still Attractive

  • Security and Stability: Fixed-rate savings accounts are protected by the Financial Services Compensation Scheme (FSCS) in the UK, ensuring savers’ funds are secure up to £85,000 per institution.
  • Competitive Interest Rates: Even amidst economic adjustments, banks continue to offer appealing rates to attract long-term deposits.
  • Predictable Returns: Unlike stocks or cryptocurrencies, fixed-rate savings accounts guarantee a fixed return, making them ideal for financial planning and stability.
  • Flexible Terms: Savers can choose terms ranging from 6 months to 5 years based on their financial goals.

Financial experts recommend securing the attractive fixed-rate savings account interest rates now!

Since the end of the low-interest era, fixed-rate savings accounts have never been as lucrative as they are now, as the inflation rate has fallen much more sharply than fixed-rate savings account interest rates.

Marianne and Peter Junghanns “The planning security and the attractive interest rates convinced us. I can now retire with peace of mind,” says Peter (60). “I feel secure and am glad that we opted for this stable investment” reports Marianne.

Inflation vs Savings

The UK's inflation rate fell to 2.8% in February 2025, marking progress toward economic stabilization. With fixed-term deposit rates exceeding inflation, savers can achieve real returns on their investments—a significant advantage compared to other savings methods.

BoE Base Rate – Historical Development Until 2024

The Bank of England's base rate has undergone significant changes in recent years, reflecting its efforts to balance inflation control and economic growth. As of April 2025, the base rate stands at 4.50%, following multiple adjustments over the past two years.

But many investors find it difficult to find suitable opportunities. The problem: regional house banks let savers down and it is difficult to keep track of what is on offer.

How to Find the Best Offers 

Navigating the UK's savings landscape can be challenging given the variety of options available. Providers such as HSBC, Santander, and Co-operative Bank offer competitive rates tailored to individual needs. Additionally, online comparison platforms like Moneyfacts can help identify top deals across different terms and deposit amounts.

Secure Your Investment Today

A team of experts offers you a free opportunity to create investment proposals tailored to your individual situation and risk appetite. This offer includes clear recommendations on where you can achieve your target return of 4.90% on average. This service is currently available for a short period of time

Protect your savings from inflation and benefit from tailored investment proposals designed for your financial goals

Advantages for you:

  • Protect your money from inflation
  • Benefit from attractive interest rates of up to 4.90% p.a.
  • Find the best fixed-rate savings account offers thanks to our expertise and network
  • ​Invest sustainably and responsibly
  • ​Free offer for individually tailored investment proposals
  • ​Average target return: 4.90% p.a.
Disclaimer / RISK NOTICE

The information provided is for general informational purposes only and does not constitute investment advice. It does not represent an offer to purchase, or a solicitation to invest in, fixed-rate savings accounts or any other financial products. This content must not be used as the basis for any investment decision. A decision to invest in a fixed-rate savings account should only be made after carefully reviewing the full terms and conditions, product documentation, and associated risk disclosures, and after consulting with qualified legal, tax and financial advisers. Fixed-rate savings accounts are financial products involving the deposit of capital for a specified period at a fixed interest rate. While generally considered lower-risk compared to equities, funds, or other market-based investments, certain risks remain. These include potential changes in the broader interest rate environment, the financial stability of the provider institution, and macroeconomic developments that may impact the real value of returns. Such risks can be mitigated by selecting products from reputable financial institutions and ensuring that the deposit is within the limits covered by the Financial Services Compensation Scheme (FSCS), which currently protects eligible deposits up to £85,000 per authorised bank or building society.