What interest rate does the M&S Bank M&S 1 Year Fixed Rate Savings pay?

The M&S Bank M&S 1 Year Fixed Rate Savings pays 3.85% AER, fixed for one year.

How much interest could I earn?

Saving £10,000 for 1 year would earn about £385 at 3.85% AER. This assumes the rate stays the same and interest stays in the account.

How much can I pay in?

You can deposit at least £500 and up to £1,000,000.

Can I withdraw my money?

No. Your money is locked in until the fixed term ends, so only put in what you won't need before then.

When is interest paid?

Interest is paid on each anniversary of opening.

Who can open this account?

New and existing M&S Bank customers can open it. You can open it online, by post or by phone.

Is my money protected?

Yes. Eligible deposits are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per person, per banking licence.

How does it compare with other one-year fixed rate bonds?

At 3.85% AER it ranks 76th of 78 one-year fixed rate bonds we track. The best pays 5.13% and the average is 4.54%.

Dashboard

Fixed Rate

M&S Bank M&S 1 Year Fixed Rate Savings Review

A one-year fixed rate bond from M&S Bank. It ranks 76th of 78 one-year fixed rate bonds we track.

Rate checked Oct 2026Got this account? Leave a review

Fixed rate · 1 year

3.85%AER

Rate checked Oct 2026Got this account? Leave a review

Protection

FSCS£120,000

Min balance

£500

Max balance

£1,000,000

Access

At maturity only

Interest paid

Anniversary

How It Stacks Up

Ranks 76th of 78

1-year fixed bonds we track

Well below average

This account 3.85%

UK CPI (Aug 2026): 3.10%; Pays 0.75% more
Average 1-year fixed: 4.54%; Pays 0.69% less
Best 1-year fixed: 5.13%; Pays 1.28% less

Inflation: ONS. Averages and best rates: accounts on DepositScout.

Compare fixed bonds

Pros and cons

Pro: New and existing savers
Con: Your money is locked in for 1 year

Good to Know

Early withdrawals will result in a £50.00 fee (if the deposit is under £50,000.00).

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Estimated returns with M&S Bank's Fixed Rate

What you could earn with M&S Bank's M&S 1 Year Fixed Rate Savings.

Estimated interest

£1,000 saved

£38.50

At 3.85% AER

£5,000 saved

£192

At 3.85% AER

£10,000 saved

£385

At 3.85% AER

£1,000,000 saved

£38,500

At 3.85% AER

Estimated over one year, if the rate stays the same and interest is left in. Amounts outside the account's minimum or maximum aren't shown.

Work out the tax on your interestSee how much of this interest could be taxed.

Our Expert Opinion on M&S Bank M&S 1 Year Fixed Rate Savings

Jan WatermannCo-Founder, DepositScout

M&S Bank's 1 Year Fixed Rate Savings pays 3.85%, which sits below the market average for fixed-rate accounts and 1.52% behind the category leader at 5.37%, so this is not where I would go if rate is your priority. It does beat August 2026 CPI of 3.1% by 0.75%, so your money at least grows in real terms. The hard catch is the usual one for fixed bonds: no access until maturity, with a minimum of £500 to open. If you want a one-year fix, Atom Bank and NS&I both offer noticeably better rates.

Compare Fixed Rate Bonds