Join fixed-rate savings deals while they last
Savers looking for a good deal are being urged to act quickly, fearing the best rates could disappear.
On Thursday, the Bank of England voted to keep its key interest rate at 5.25 percent in response to lower-than-expected inflation figures released last week.
Economists say this may indicate that interest rates do not need to rise further to bring inflation under control.
Anna Bowes, of interest rate monitor Savings Champion, said: ‘Once base rates have peaked, some of the best interest rates may be introduced quickly as they may be too expensive. If you want to commit, now is the time to do it.”
Last week, Atom Bank lowered the interest rate on its fixed-rate bonds by up to 0.29 percentage points. It now offers a six-month fixed-rate bond that pays 5.3 percent. Kent Reliance cut its one-year fixed rate Isa rate from 0.07 percentage points to 5.71 percent.
Act quickly: Some of the best rates can be applied quickly because they may be too expensive.
But savers can still find fixed-rate deals at around 6 percent. The National Savings & Investments Guaranteed Growth Bond pays 6.2 percent on a one-year bond. And Nationwide Building Society pays a market-leading 8 per cent on its Flex Regular Saver account. You can pay up to £200 per month.
Savers looking to put aside larger amounts can save up to £500 a month in Yorkshire Building Society’s Loyalty Regular eSaver, which has a rate of 7 per cent.