Jump to main content of pageaccessibility informationSitemap
14 Dec 2019

News

Fixed rate savings take a tumble

Rachel Thrussell, Head of Savings at Moneyfacts.co.uk, comments:

“High savings rates have been a by-product of the credit crunch, as providers source deposits as an alternative option to raising funds on the money markets. Competition is still alive, with rates paying almost 1% more than Bank of England base rate in the variable market, and as much as 1.35% within the fixed market.

“The fixed rate market has seen many ups and downs over the last quarter of 2007, peaking in September and December for very short periods of time at 7%. However the last few weeks have seen the market take its latest downturn, with six providers reducing rates by as much as 0.81%.

“Typically the deals hit have been bonds of one year or less. The table below shows the most recent reductions:

Provider

Account

Reduced by

New Rate

Minimum Deposit

Abbey

6 Month Ebond

0.25%

6.10%

£1K

Birmingham Midshires

1 Year Fixed Rate Bond

0.30%

5.75%

£1

Bradford & Bingley

eBond (1 year)

0.30%

6.50%

£1K

 

 

Julian Hodge Bank

1 Month Short Term Fixed Rate

0.07%

5.39% - 5.59%

£1K

3 Month Short Term Fixed Rate

0.12%

5.46% - 5.66%

£1K

6 Month Short Term Fixed Rate

0.12%

5.44% - 5.64%

£1K

9 Month Short Term Fixed Rate

0.08%

5.40% - 5.60%

£1K

1 Year Capital Millennium Bond

0.20%

6.00%

£1K

2 Year Capital Millennium Bond

0.25%

5.60%

£1K

3 Year Capital Millennium Bond

0.25%

5.50%

£1K

4 Year Capital Millennium Bond

0.15%

5.50%

£1K

5 Year Capital Millennium Bond

0.10%

5.50%

£1K

Melton Mowbray BS

1 Year Fixed Rate Savings Bond

0.35%

5.65%

£1K

 

Nationwide BS

1 Year Fixed Rate Bond

0.20%

6.40%

£1

1 Year Fixed Rate eBond

0.25%

6.45%

£1

2 Year Loyalty Bond

0.20%

6.00%

£1

 

 

Halifax

3 Month Fixed WebSaver

0.81%

5.97%

£1

1 Year Fixed WebSaver

0.15%

6.20%

£1

2 Year Fixed WebSaver

0.35%

6.00%

£1

3 Year Fixed WebSaver

0.20%

6.00%

£1

4 Year Fixed WebSaver

0.20%

6.00%

£1

5 Year Fixed WebSaver

0.15%

6.05%

£1

Moneyfacts.co.uk

“While the overall market is falling, with several deals dipping below 6%, there are a handful of exceptional rates still available. But savers may need to act sooner rather than later if they want to nab themselves one of the high rates still left.

“If base rate does continue to fall throughout 2008, investors in fixed rate bonds could see their savings working extra hard for them, compared with the variable rates which will inevitably fall, especially when the top paying fixed rates are already higher than any variable rate found today.

“But before jumping head first into a bond, make sure you know the full terms of the account. While some bonds will permit access, for most you will be sacrificing access for the whole term of the deal. Always make sure you have a safety net of savings which is accessible, otherwise breaking into a bond could see your hard earned return disappear and you left looking for a new home for your savings as the bond closes early.”

“Savers who have seen their variable rates cut by as much as 0.55% over the last few months could see the piece of mind that a fixed rate deal offers as a very attractive option.

“The best savings portfolio will spread risk and access to achieve a workable yet rewarding savings pot, and should always include making the most of any tax free savings such as ISAs.

 

Company

Account

Gross

AER

Notice or Term

Deposit

London Scottish Bank

High Interest Bond Issue 22

6.85%

6.85%

1 Year Bond

£2,000

Stroud & Swindon BS

Fixed Rate Bond Issue 64

6.81%

6.91%

12.08.08

£500

Anglo Irish Bank

Fixed Rate Bond

6.75%

6.75%

1 Year Bond

£500

West Bromwich BS

The Midland Bond (6 Month Fixed Rate)

6.75%

6.89%

31.05.08

£1,000

London Scottish Bank

High Interest Bond Issue 22

6.70%

6.70%

2 Year Bond

£2,000

Icesave

Fixed Rate Savings

6.50%

6.50%

3 Year Bond

£1,000

Moneyfacts.co.uk – 14.1.08

 

 

 

 

 

 

Moneyfacts Group
Moneyfacts is the UK’s leading independent provider of personal financial information and our data is used and trusted throughout the financial industry. 

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Think carefully before securing other debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.

Go Direct.co.uk is a trading style for website purposes of Go Direct UK Ltd.

Go Financial Services is a trading style of Go Direct UK Ltd which is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales Company 5703224. FCA Number 456600

We normally do not charge a fee for mortgage advice, however this is dependent on your circumstances. Our typical fee would be £500