Revealed: The three top savers left as best buy one-year bond falls from 4.6%
The best buy one-year fixed rate bond has fallen from 4.6% last week, as predicted by savings experts. So where can savers turn now?
Just last week, experts said the fixed rate bond market had peaked – with the best buy one-year deal paying 4.6% at the time – as they urged savers to grab a deal before they fell back.
And now, just days later, it seems they were right as the top-paying one-year fixed rate bond now pays 4.5% AER/gross.
Savers can opt for this from First Save or Ikano Bank, while Vanquis pays 4.45%.
James Blower, founder of the Savings Guru, said while this isn’t a big cut, “I don’t expect any of these three rates to last the week so we could well be at 4.4% by the end of this week”.
Blower said it’s not the biggest drop he’s seen, as rates fell sharply at the start of the Covid pandemic, but warned: “It is a sign that fixed rates are bottoming out”.
‘Rates have peaked for a while’
He said: “We warned savers last week that the RCI Bank’s 4.6% one-year deal ‘might be as good as it gets’ and that those holding out for 5% on a one-year fixed rate bond were likely to be disappointed.
“Last week was the first one this year where every single best buy fixed-rate bond category saw the best buy rate go. We don’t expect rates to crash from here, but we do think we’ve probably peaked for a while and that savers may have to wait until well into next year before we go higher than where we currently are.”
However, he said that the big caveat is that a lot of this depends on what the Budget looks like this week.
“But we aren’t expecting that to have any big surprises that changes everything,” Blower added.