Best fixed-rate savings accounts to open now as top deals could vanish

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The Bank of England has hit the pause button on the rate hike cycle.

In recent months, predictions about where the base rate would ultimately peak have fallen from a high of 6.5 percent to 5.5 percent.

But this week’s surprise drop in inflation, from 6.8 percent to 6.7 percent, was enough to convince the majority of the Bank’s Monetary Policy Committee to keep the base rate at 5.25 percent.

Savers will now be watching interest rates more closely than ever to see if today’s interest rate pause will push down the best savings rates on the market.

Interest rates have recently reached a high not seen in more than a decade. At the beginning of this month, NS&I announced a huge interest rate increase on its one-year government bonds to 6.2 percent.

But experts have warned that savers should not expect fixed-interest savings accounts like this one to last for long.

This week, James Blower of the website Savings Guru said: ‘We think there is about a week left on this account.’

Savers looking for a solution while these interest rates are high may want to do so now.

We’ve rounded up some of the best fixed rate accounts on the market.

You can sign up for our free savings alerts to get the best savings deals delivered to your inbox as soon as they arrive.

The rate of 6.2 percent on the guaranteed growth bonds makes them the market-leading fixed bonds with a term of one year.

The next best one-year fixed bond pays 6.11 percent at Union Bank of India.

The minimum investment is £500, and the maximum is £1 million per issue. After a year, savers have the choice to withdraw or reinvest their money. Interest is paid on the due date.

Guaranteed growth bonds are taxable, unlike some NS&I products.

Ford money: Fixed bond with a term of two years – 6.05%

Savers looking to lock in a fixed interest rate for two years can look at Ford Money’s two-year fixed bond, which pays an interest of 6.05 percent.

The minimum amount to open the account is £500 and you can stash away up to £2 million. You can pay out the interest earned on your savings annually or monthly. You can only open this account online, but once the account is opened you can manage it online or by phone.

Your savings are protected by the FSCS. It protects up to £85,000 of the money you put into a Ford Money account.

Tandem bank*: Fixed bond with a term of five years – 5.85%

Savings platform Raisin UK offers a bond with a fixed interest rate of 5.85 percent through Tandem Bank.

In addition to this rate, a registration bonus of €25 is included.

The minimum amount required to open the account is £1,000, and the maximum amount you can put away is £85,000, which is protected by FSCS.

As a savings platform, Raisin UK offers access to multiple savings products and banks. It allows savers to manage all their savings through one online app-based account.

You can also get an interest rate of 6.1 percent over one year through Raisin UK with the £25 bonusand £10,000 deposited, which is an equivalent rate of 6.34 per cent, better than the NS&I rate above.

Shawbrook’s flexible one-year fixed Isa is near the top of the table with an interest rate of 5.83 per cent.

Virgin Money Isa pays more, at 5.85 per cent, but is not flexible.

You can open the account with a minimum amount of € 1,000 and the maximum amount you can deposit into this account is € 250,000.

You can switch to Shawbrook’s Isa from cash Isas and stocks and shares Isas.

Secure Trust Bank offers the highest two-year tax-free rate of 5.75 percent. United Trust Bank also offers the same rate.

Andrew Hagger, personal finance expert at MoneyComms, said: ‘Competition remains fierce in the cash Isa market, with many savers turning to tax-free accounts to soften their tax situation after exceeding their personal savings allowance, so I don’t expect that interest rates will fall significantly in the coming months.’