Best 1 Year Fixed Rate Bonds in October 2026

AlRayan Bank's 12 Month Fixed Term Deposit pays 5.15%, which sits above the market average for fixed-rate accounts, though it is 0.22% behind the current market leader at 5.37%. The rate beats August 2026 CPI of 3.1% by 2.05%, so your money does grow in real terms.

The minimum is £10,000, which rules out smaller savers, and the usual fixed-rate catch applies: no access until maturity. Interest is paid quarterly, which suits anyone who wants a regular income stream rather than a lump sum at the end.

Union Bank of India (UK) Ltd's 1 Year Fixed Rate Deposit pays 5.12%, which sits above the market average for fixed-rate accounts across all terms, though it is 0.25% behind the current market leader at 5.37%. In real terms the rate is doing useful work, coming in 2.02% above CPI inflation of 3.1% as of Aug 2026.

You need at least £1,000 to open and can deposit up to £480,000, which gives it a generous ceiling for larger savers.

The main catch is the standard one for a fixed bond: your money is completely locked away for the full year with no access until maturity.

Close Brothers Savings pays 5.12% on this one-year fix, which sits above the market average for fixed-rate bonds across all terms, though it trails the category leader by 0.25% (5.37%). With CPI at 3.1% as of Aug 2026, you are still beating inflation by 2.02% in real terms, which is decent.

The minimum is £10,000, so this suits savers with a meaningful lump sum who can lock it away entirely until maturity, as no access is permitted before then.