OakNorth Raises Its 2 Year Fixed Savings Rate to 5.21%: What £1,000 and £5,000 Earn

TL;DR: OakNorth Bank has raised its 24 Month Fixed Term Savings Account to 5.21% AER, joint top of the two-year fixed market with Oxbury Bank. You can open it with £1 and add money for 14 days after opening. £1,000 earns about £107 over two years and £5,000 earns about £535, with interest paid on maturity.

What is the new OakNorth rate?

OakNorth Bank now pays 5.21% AER on its 24 Month Fixed Term Savings Account, fixed for the full term, so the rate cannot change while your money is locked away. You can open the account online or through the app with £1, up to a maximum of £500,000, and you must be over 18 and a UK resident. Interest is calculated daily and paid in full on the maturity date. See the rate on OakNorth’s own fixed term page.

What does £1,000, £3,000 and £5,000 earn?

OakNorth’s own example shows a £1,000 deposit growing to £1,106.91 after 24 months. Scaled up, the returns look like this, before tax:

These figures assume you leave the money untouched for the full two years and interest compounds to maturity.

What is the catch?

The catch is the lock-in. You cannot withdraw during the fixed term, so only put in money you can leave alone for two years. Keep your emergency money in an easy access account instead. Your money is protected up to £120,000 per bank by the Financial Services Compensation Scheme. With inflation at 3.5%, a 5.21% rate beats inflation before tax, but remember interest counts towards your Personal Savings Allowance.

Should you switch for it?

Switch for it only if you can leave the money untouched for two years and you have emergency savings elsewhere. If you may need the money sooner, an easy access account pays less but stays flexible. If you open the OakNorth account, use the 14-day window to add everything you plan to lock away, because after that the account is closed to further deposits. If you have idle savings earning little, check what your money could be doing with the Found Money Finder.

Sources: OakNorth personal savings fixed term page and Moneyfactscompare weekly savings roundup, checked 24 October 2026. Figures are indicative and before tax. This is information only, not financial advice.