The best fixed rate savings accounts can be opened now as the best deals could disappear
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The Bank of England has hit the pause button on the interest rate hike cycle.
In recent months, forecasts for where the base rate would eventually 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 rates more closely than ever to see if today’s pause will push down the best savings rates on the market.
Lock it in: Now may be the time to lock in a good rate, as fixed savings account rates could slowly start to drop.
Recently, rates have reached highs not seen in more than a decade. Earlier this month, NS&I announced a massive increase in the rate on its one-year fixed bond to 6.2 per cent.
But experts have warned that savers shouldn’t expect 6 percent-plus fixed-rate savings accounts like this one to stick around for long.
On Monday this week, James Blower of the Savings Guru website said: “We think there’s about one more week left in this account.”
Savers who want to fix their rates while these 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 receive the best savings offers in your inbox as they arrive.
The 6.2 percent rate on Guaranteed Growth Bonds makes them the leading one-year fixed bond on the market.
The next best one-year fixed bond pays 6.11 per cent with Union Bank of India.
The minimum investment is £500 and the maximum is £1 million in each issue. After one year, savers will have the option to withdraw their cash or reinvest. Interest is paid at maturity.
Guaranteed growth bonds are taxable, unlike some NS&I products.
Ford Money: Two-year fixed bond – 6.05%
Savers looking to lock in a fixed rate for two years could consider Ford Money’s two-year fixed bond, which pays 6.05 per cent interest.
The minimum amount to open the account is £500 and you can save up to £2 million. The interest generated by your savings can be paid annually or monthly. You can only open this account online, but once the account is opened you can manage it online or over the phone.
Your savings are protected by the FSCS. Protects up to £85,000 of the money you deposit into a Ford Money account.
tandem bench*: Five-year fixed bond – 5.85%
Savings platform Raisin UK offers a 5.85 per cent fixed rate bonus through Tandem Bank.
There is a £25 sign up bonus included in addition to this fee.
The minimum amount needed to open the account is £1,000 and the maximum amount you can save is £85,000, which is protected by the FSCS.
As a savings platform, Raisin UK offers access to multiple savings and banking products. It allows savers to manage all their savings through a single app-based online account.
You can also get a 6.1 percent rate for one year through Raisin UK, and with the £25 bonusand £10,000 deposited, is an equivalent rate of 6.34 per cent, better than the previous NS&I rate.
Shawbrook’s one-year flexible fixed Isa is near the top of the table with a 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 of £1,000 and the maximum you can deposit into this account is £250,000.
You can transfer to Shawbrook’s Isa from cash Isas and stocks and shares Isas.
Secure Trust Bank offers the top two-year tax-free rate of 5.75 percent. United Trust Bank also offers the same rate.
Andrew Hagger, personal finance expert at MoneyComms, says: “Competition remains intense in the Cash Isa market and many savers use tax-free accounts to mitigate their tax situation after exceeding their personal savings allowance, so don’t I hope rates go down.” a lot in the coming months.
