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Savers told to move fast for fixed rate bonds

Savers told to move fast for fixed rate bonds

Category: Savings

Updated: 16/11/2009
First Published: 16/11/2009

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 It is now over 6 months old so the content may be out of date.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 looking to take out a fixed rate bond need to act fast, according to the latest research from Moneyfacts.co.uk.

The average shelf-life of fixed rate bonds fell to a new low of 23 days last month.

At its peak in March 2006, the average time that bonds were open for investment was 158 days.

"The demand for fixed rate investments continues to increase as savers look to maximise returns," said Michelle Slade, spokesperson for Moneyfacts.co.uk.

"Such high demand means that bonds are being fully subscribed quickly, causing providers to pull many of the most competitive deals and replace them with new issues.

"Historically the average shelf-life of a fixed rate bond was around 120 days, but this has fallen sharply as base rate has plummeted."

More than a third of savers have been looking to invest in fixed rate bonds over the last month, despite those with maturing one year bonds having seen the maximum interest rate available fall from 6.70% last year to 3.95% now.

"If you want to secure the best deal, then you will need to act fast," added Ms Slade.

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