You are here: Home - Saving-Banking - News -

One-year savings rates hit 5% for the first time since 2009

Written by: Rebecca Goodman
Interest rates on one-year fixed-rate accounts have reached 5% today, with a suite of new accounts from Isbank, via Raisin.

This is the first time a one-year fixed-rate account has paid 5% or more for 14 years.

This is a 11% increase in a month, with the best buy one-year account in April paying 4.51% interest, according to data from Moneyfacts.

The bank has launched five fixed-rate accounts, all paying 5%, which have shot into the top of the tables for the one, two, three, four, and five-year fixed-rate accounts.

The last time an account in the two, three, four, and five-year tables paid 5% or more was November 2022.

It follows successive rate rises by the Bank of England (BoE) which have seen providers increasing the rates paid on savings accounts.

A month ago in April, the best buy one-year account paid 4.51% from SmartSave and it required a £10,000 investment, according to Moneyfacts. While just five days ago, the best buy account paid 4.80%.

The last time a 12-month account paid 5% or more was 2009 and it was from ICICI Bank UK paying 5.10%.

The accounts are provided by the Turkish bank, Isbank, via Raisin. For the one-year account, a minimum of £1,000 must be deposited to open the account. It can be opened online, and also operated by post or the phone.

The majority of providers at the top of the tables are challenger banks, while the main high street banks have been criticised for not passing on rate changes as quickly.

‘Hard to predict if rates will be surpassed by higher returns’

Rachel Springall, finance expert at, said: “It is hard to predict whether the latest top rates will be surpassed by higher returns in the coming days, as there is currently a difference of around 0.30% from the top place and tenth place one-year fixed term deal today.

“The Bank of England base rate rises and competition among savings providers has led to higher returns over the past year and, compared to a year ago, savers get a return of almost 3% more on the top one-year fixed bond.

“While there are other longer-term interest rates to consider, there may well be a dividing sentiment among consumers and providers as to whether interest rates are destined to reduce in the months to come. It will be interesting to see how the top rate deals fluctuate and how demand impacts the shelf life of the best deals over the next quarter.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Big flu jab price hikes this winter: Where’s cheapest if you can’t get a free vaccine?

Pharmacies, supermarkets and health retailers are starting to offer flu jabs ahead of the winter season, but t...

Is now the time to fix your energy deal?

Fixed energy tariffs all but disappeared during the energy crisis. But now they are back with an increasing nu...

Everything you need to know about the pension triple lock

Retirees are braced to receive another bumper state pension pay rise next year due to the triple lock mechanis...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

The best student bank accounts in 2023: Cash offers, tastecards and 0% overdrafts

A number of banks are luring in new student customers with cold hard cash this year – while others are compe...

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Money Tips of the Week