Savers looking to invest their money for a year are facing the lowest average rates for more than a year, Moneyfacts.co.uk research has found.
The average rate of one year bonds today is 2.63%, the lowest figure recorded since March 2009.
The 14-month low is in marked contrast with last month, when the average rate paid by one year savings bonds reached an eight-month high of 2.85%.
In recent days, Moneyfacts.co.uk has seen a number of one year deals withdrawn or replaced by accounts paying reduced rates, which seems to be the main factor in the overall fall.
However, savers can still find good rates of interest of they're prepared to place their money with lesser known providers.
United National Bank currently pays 3.45% on minimum investments of £2,000, while savers looking to pay in a little less can get 3.40% on £1,000 or more with Allied Irish Bank (GB).
While not quite as well known as their high street counterparts, these providers benefit from exactly the same protection, meaning your savings are completely covered up to £85,000 were something unforeseen to happen.
"This will come as yet more disappointing news to savers who continue to be faced with a battle to achieve a decent return on their savings," said Louise Holmes, spokesperson for Moneyfacts.co.uk.
"Despite a dip in the average rate, the number of one year bonds in the market currently stands at 139.
"This suggests that demand is high amongst investors prepared to lock their money away for a few months, rather than long term, during such unpredictable economic times."
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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