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Fixed rate savings best buys - blink and you'll miss them

Fixed rate savings best buys - blink and you'll miss them

Category: Savings

Updated: 31/10/2008
First Published: 01/02/2008

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 It is now over 6 months old so the content may be out of date.

As fixed rate savings continue to fall, looks at what this sector of the savings market still has to offer.

Although we have seen a dramatic drop in some short term fixed rate savings over the last couple of weeks, with larger institutions such as Halifax dropping rates by up to 1%, there are still some really good fixed rate savings deals to be found.

The best fixed rate savings deals don't last for long, as the Alliance and Leicester 1 year bond paying 7% proved when it was withdrawn after only 5 days. If you are considering getting a fixed rate savings deal, it is advisable to act soon or risk missing out.

But no sooner did the Alliance and Leicester bond disappear, when up stepped Northern Rock with a cracking new fixed rate savings deal at 6.9%.

Despite SWAP rates having dropped 0.46% this month, other influences such as the institutions' liquidity seem to be keeping the fixed rate savings rates comparatively high. Whatever the underlying reasons for providers keeping the rates high, it is good news for savers.

For anyone looking for a high interest paying account without the need for immediate access to the money, fixed rate savings bonds are paying by far the most competitive rates. With expectations of further base rate cuts in the pipeline, fixed rate savings are looking a lot more attractive and of course offer that extra stability.

Moneyfacts Best Buys - Fixed Rate Savings

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 Any products featured may be withdrawn by their provider or changed at any time.