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Fixed Rate Savings Accounts

What are Fixed Rate Savings?

• Fixed Rate Savings are pretty much what they say they are. You get a fixed rate of interest on your savings, usually for a specified period of time. This time period maybe a number of years or months, or until a particular future date.
• The main benefit is that these accounts will not be affected by changes in the Bank of England base rate and allow you to be certain about what your return will be.

Who are they Suitable For?

• Fixed rate savings are for those people who want to know exactly what their interest rate will be for the specified time period.
• They can be a valuable as part of a portfolio of savings which includes variable rate savings and other investments.

What to Look Out For

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• If you opt for a fixed rate when rates are low, you may be losing the opportunity for a higher rate as rates increase.
• If inflation increases, the value of your savings will decrease in real terms.
• Make sure you understand the terms for getting the fixed rate, such as whether withdrawals are permitted during the term, or how many withdrawals are allowed, and whether additional amounts can be added or not.

What to do next

Get a feel for the Key Factors to Consider when choosing a savings plan, so you can go in knowing what you’re looking for.

Then compare fixed rate savings accounts to find the best deals around with our best buy tables or product searches.

Moneyfacts.co.uk has also put together a range of savings guides if you are looking around for other types of savings plan.