Fixed term savings

Hi everyone
I’ve just opened the 1 year fixed savings account from Charter Bank. I’ve deposited the minimum amount at the moment but I could afford more. Is there a tool or method I could use to calculate how much I can afford to lock away for the year?

Hi @Gingerpips I too have opened one of those accounts. There isnt really a tool that can work out what you will need for the year. What you could do is consider splitting your money (if you have enough funds) and lock them into accounts with different fixed periods ranging from 3-12 months. You should have some funds that you can access without restriction and then use what you have left for fixed periods.


Thanks for the suggestion. I’ve got a 1.45% savings account where the bulk of my savings are at the moment which is easy access, all of the other saving accounts I’ve looked at don’t offer above that so I don’t see the advantage of locking it away with a worse/same rate.

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I like the idea of fixed term pots, but I prefer instant access just in case. I have a Marcus account offering 1.5% for 12 months. I can deposit as much as I like (given my finances I won’t hit the limit).

I’ve also opened a savings account with Santander at 2.5%, but I can only deposit £200 p/m through a standing order. I can withdraw back to my Santander account if I need to.

I think having a mix is great. An example of how I use them is as follows. I receive dividends from two companies I own which mean I also get a fairly large tax bill to go with it.

When the dividends arrive I portion the tax money off and fix it for as long as I can at the best rate, the way I see it is almost the same as a truly locked pot with the added benefits of great interest.

I do the same with, for example, my PS5 pot. I’ve saved up £600 to grab one on release, no point sat earning 1.5%, when I could fix it for a year at 2.05% with Atom.

There’s absolutely a use case for both. I think there becomes a point though where I just don’t need easy access to anymore money and I might as maximise my returns elsewhere.

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I’m still shopping around for my best deals. If you can afford to lock away some cash at a great rate I would encourage you too, even if it’s just £500. Better earning interest than sat in an account doing nothing.

As noted, Marcus offers 1.5% (the bonus rate is renewable, for now at least). covers every account of note I believe.

What rate are you getting at Charter for you 1 year fix? A 1 year account doesn’t seem to be on their website anymore.

There are accounts offering more than Charter for 1 year fixed, if you’re willing to go down the Sharia route.

As for how much you can lock away, that’s entirely dependent on your earnings and bills. I guess if you don’t have a budget, you should certainly budget out your whole year before locking any money away. No point chasing an extra ~0.5% interest but then having to take out a 20% loan!

It’s the pot you can get with Monzo, 1.81%

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I also just found out that you can’t add to the pot once you’ve opened it which is incredibly annoying, so now it’s stuck with £500 in it that I can’t add to!

Oh, well if you can’t open more pots with Monzo, or want a higher rate, try Atom bank. They have an app, have a low £50 minimum, and give 2%. Again, only after you’ve budgeted your whole year.

That’s how fixed pots work. Open deposit and fix for the entire term. No additions no withdrawals.

What I think you’re after is a notice account or a regular savings account - these tend to be semi-fixed, can be added to regularly and tend to have a decent interest rate.

Monzo have written about them here:

Yeah, i’ve already got one of these with Nationwide, thank you though

I can always open new fixed pots in the future and save more in there so it’s not the end of the world

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