You are here: Home - Saving-Banking - News -

Revealed: The three top savers left as best buy one-year bond falls from 4.6%

Written by:
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.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week