One in four people with cash savings is now putting money into fixed rate accounts, according to new research by Investec.
The wealth manager has found that 11 million savers moved money into fixed savings over the past year, due to an expectation the Bank of England base rate will soon fall. Almost two-thirds selected one-year deals.
But savers are being warned they must move fast to enjoy fixed interest payments of 5 per cent or more as many deals are being pulled.
Lock in: Savers are being warned they must move fast to enjoy fixed interest payments of 5 per cent or more as many deals are being pulled
Half a dozen providers still pay such rates – down from more than two dozen just a month ago.
The base rate was held at 5.25 per cent in December for the third month. Experts predict it could soon come down if inflation continues to tumble. Inflation stands at 3.9 per cent, gradually falling from a high of 11.1 in October 2022.
Among the best one-year fixed rate bonds are an account from Investec Bank paying 5.3 per cent, 5.15 per cent from the Bank of London and The Middle East and from Habib Bank and 5 per cent from Starling Bank.
