As financial institutions respond to rising interest rates, UK savers are encouraged to act swiftly to secure attractive fixed-rate bonds that provide stability amid economic uncertainty. Inflation further breaks down the real value of whatever nominal returns still exist. This gives people an opportunity to secure low rates before they go even lower.
Fixed-rate bonds provide certainty, enabling savers to lock in their cash for a fixed term and ensure their interest earnings are safe. Funnily enough, Shawbrook Bank, Investec and Atom Bank all currently offer two-year fixed-rate bonds paying more than 4.1%. This strategy is especially attractive to those who would like a longer-term savings commitment to insulate themselves from any future interest rate drops.
The largest UK alternative banking brand, run by Goldman Sachs, offers a one-year fixed-rate bond. This bond has a spectacular maximum rate of 4.55%. This product stands out in a market where savers often seek to balance access to funds with competitive interest returns.
Meteor is excited to announce that we’ve partnered with OakNorth Bank to present you an amazing opportunity. They pay the top-paying one year fixed-rate bond at 4.35% for investments of £1,000+! Shawbrook Bank is currently offering great rates on its one year fixed-rate savings bond of up to 4.27%. OakNorth Bank comes in a close second, offering a good rate of 4.23% fixed.
With inflation still at painfully high levels, choosing savings vehicles that have a return above inflation is more important than ever. At the moment, savers have more than 1,400 accounts to choose from that pay rates above inflation, nearly half of which are fixed-rate bonds.
If you want more flexibility, easy-access savings accounts pay even more, with rates over 4%. Chase recently launched a promotional high-interest easy-access account. Good news current account customers – sensational 4% interest on credit for the first 31 days!
“Those hoping to preserve returns on cash held in bank and building society savings would be wise to seek out the most competitive deals sooner rather than later.” – Haine
Production coordinator Caitlyn Eastell wants to encourage advanced financial planning. As she notes here, setting a strong plan at the beginning of the year is key to more successful outcomes.
“January is the ideal time for savers to set new financial goals and check if their savings are working as hard as they can,” Eastell stated.
With the continuing evolution of the financial landscape, it’s more important than ever for today’s savers to stay alert and adaptable. “It is crucial that savers are fast to react to attractive deals. Otherwise, they face missing out,” Eastell added.