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Savers seeking out fixed rate bonds

Savers seeking out fixed rate bonds

Category: Savings

Updated: 17/09/2009
First Published: 17/09/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Savers are increasingly turning to fixed rate bonds in the search for better savings returns.

According to research from Moneyfacts.co.uk, 37 per cent of savers in August were looking for a fixed rate account, up from 29 per cent at the start of the year.

By comparison, the number looking for an easy access account over the same period declined to 27 per cent from 32 per cent.

Meanwhile, it was also revealed that those prepared to lock their money away are able to benefit from top rates as much as two per cent higher than those available on an easy access account.

The highest rates continue to be offered on bonds with a five year term, although 78 per cent of those searching for fixed rate bonds have been looking for no more than a two year commitment.

"Access to funds appears to have become less important in this low interest rate environment as savers look at alternative options to maximise the returns on their money," said Michelle Slade, spokesperson for Moneyfacts.co.uk.

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 Any products featured may be withdrawn by their provider or changed at any time.

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