Fixed term saving accounts - really daft question

[crimesagainstwine]

I'm sure this is a really dumb question but I can't find the answer anywhere (or am looking in the wrong places!)

I have some savings in an account linked to my current account but the interest rates are pretty poor.

I know there are some good fixed rate offers around at present for one, two or three years.

My question is - if I started a fixed term savings account in, for example June 2022, and put £10K in it then what happens if in September say I want to put another £5K in? When does the fixed term start? Do I need to get all savings together and then "lock them in" for 12 months?

Sorry if I am being dense!

The fixed term accounts I've had in the past have not allowed me to add more after the initial deposit or withdraw money without penalties before the end of the fixed term.

You would need to read the small print of the individual bank/building society and its regulations regarding the specific account you are interested in. I suspect that if you invest £x in a fixed-term savings account, it is a one-off, and at the end of the term they either pay the money back to you (including the earned interest over the term) or the account reverts to a 0.000001% rate account. I don't think you can add to them part-way through. You'd need to open a separate account for the new investment, which would have a different maturity date from the original sum.

Thanks both!

This is what I thought - but was afraid to ask as it seemed really obvious :)

So ... save as much of a lump sum as you can and then plonk it in an account and leave it then without adding more for the fixed term

You could probably just get another fixed term account later on. I don't know if they're restricted to one per person. Some will be, some won't, or it could be that you can only have one of a particular issue, but once they change the product, you can then have another one (look closely at the account name, it will say something like Fixed Saver Issue 1, and after a while change to Fixed Saver Issue 2, possibly with a different interest rate or end date). Or look at another bank.

Need to read terms and conditions but mine it starts 14 days after opening ad after that cannot add more but can open another one if have minimum £5000 to open with. Mine are just for one person. Be careful you don't need access, its non for mine and be careful at end of term - with mine I just got a choice of options but had one with Santander before where I missed that as only sent in post and it went into a years fix at 0.01% or similar and no access in a year was trying to buy a house. Santander said tough. Ombudsman complaint got them to release the money, they were supposed to also pay £75 compensation but never did. But was able to buy house which was main thing.

I have taken out Tesco savings bonds, I usually do a 2 year fixed and they say you can only pay in money within 30 days of opening account.

I've worked for a bank in savings, and fixed term accounts have set periods (usually 14 days) to put your money in and after that you can't put more money in or take any out until the fixed term is up. Look for the 'key product information sheet' - every savings account has one and it'll tell you the dates.

But you can open as many savings accounts as you like. The same account might not be available later down the line, just open whichever account that has the best rate at that time.

Just be sure you are thinking carefully about fixed rates currently. Most people would say it’s likely interest rates will rise not fall for a while. My interest rates on easy access have gone from 0.5 to 1% in 8 weeks.
I have a fixed rate account from 5 years ago paying 3.0% , that seemed low at time but rates were dropping and it was a good deal in comparison . But you can’t get that even on 5 year currently and I’d not fix anything below 3.5% as a target. It’s got a way to go before that point

As PP says - I'd be very cautious about fixing money at the moment. It depends entirely on your risk appetite and how much easy access/rainy day money you have - but if you can really afford to lock things away I would either -

1. Invest it wisely in an ISA/fund and share account and forget about it.
2. Put it in a fixed rate savings for a short time - 1 year perhaps so that you can re assess interest rates in a year from now without incurring a penalty.

Money Saving Expert has some good guidance on all this.