Fixed-rate savings 'disappearing from banks'

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Fixed-rate savings 'disappearing from banks'

Wed 9th Dec 2009

The number of banks who are ending their fixed-rate savings bonds is increasing rapidly, according to moneynet.co.uk.

In the last ten days, many bonds with high rates of interest have been pulled from sale by financial institutions, such as a three-year bond from Britannia at five per cent and a one-year product from the Post Office at 3.7 per cent.

According to the financial guidance site, one of the reasons for this is the number of people who have tied their money into the best rate they received during a bond that has already ended are receiving a rate of up to 6.45 per cent.

For the best rates, the website suggested that one and two-year products are the most competitive, in addition to overseas and niche institutions.

Findings earlier in the year by moneynet.co.uk revealed that only around one in five variable-rate accounts provide savers with any real return on their investments.

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