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Featured - Account Types
What type of savings account do you need?Find out about the different types of savings accounts available to suit a variety of needs.
Savings
ISAs
Residential
Buy to let
Specialist mortgages
Featured - Debt and your credit score
How debt impacts your credit scoreA healthy credit score has its benefits, so make sure you manage your debt correctly.
Loans
Featured - Life Insurance
Life InsuranceFor peace of mind that your loved ones will be supported financially after you die, consider taking our life insurance. Find out more and compare policies.
Home & vehicle
Health & travel
Featured - High interest current accounts
Find current accounts offering in-credit interest rates up to 5.00% AER.
Current accounts
Featured - Purchase Cards
Best purchase credit cardsExplore the best cards with a 0% introductory period.
Credit cards
Credit repair
Calculators & guides
Business savings
Business products
Business insurance
How much can I give as a cash gift?
How much can I give as a cash gift?Will your loved one's gift be tax affected?
Categories
Featured guides
Popular news
Latest news - by category
Other money & finance news
Featured Star Ratings categories
Other Star Ratings categories
Average fixed savings rates fell across the board in the month to September, with top returns dropping by as much as 0.35 percentage points.
The fixed bond market saw average rates drop across every category in the month to September, according to latest analysis from Moneyfactscompare.co.uk.
It found that average rates for a one-year bond fell by the largest amount, dropping from 4.63% to 4.43% between August and September.
Meanwhile, average returns on a five-year account declined from 3.92% to 3.80% in the same period.
Leading rates in the fixed sector weren’t exempt from a decline in the month to September; the top one-year, two-year, three-year and five-year fixed accounts all saw returns fall.
In the same period, the uppermost rate for a one-year bond, which was at 5.40%, dropped to 5.05%, with two-year accounts slipping below the 5.00% threshold to 4.90%.
Furthermore, while short-term accounts have paid higher rates than their longer-term counterparts for some time, the gap between the best-performing one-year and five-year bonds is closing, narrowing from 0.45 to 0.41 percentage points between August and September.
However, it’s worth noting that this gap is still wider than a year ago, when the best rates for one- and five-year bonds sat at 6.20% and 5.85% respectively.
The fixed market may still be adjusting to the latest cut to the base rate, which is a significant factor in determining returns offered by providers.
The Bank of England’s Monetary Policy Committee announced the lowering of the UK’s central interest rate last month from 5.25% to 5.00%, marking the first drop in more than four years.
Those concerned rates will continue falling beyond 5.00% may wish to lock in higher returns quickly and should consider shopping around for the best-paying accounts.
This includes lesser-known brands, which currently offer some of the most competitive rates.
“Challenger banks will have their own deposit targets to meet so that they can comfortably fund their future lending. Therefore, some could break against the rate-cutting trend to entice new business, but the deals may not be on the shelf for long,” explained Rachel Springall, Finance Expert at Moneyfactscompare.co.uk.
“However, fixed bonds can face notable cuts or even be withdrawn from sale if providers get inundated with deposits from savers rushing to secure a top rate deal, fearing rates are doomed to fall further still,” she continued.
It’s unclear whether there’ll be more cuts before the end of the year, but it’s always important to review your savings to ensure you’re still receiving the most competitive returns.
With this in mind, our fixed bond chart is regularly updated and can show you the best rates currently on the market.
All of our newsletters are available free by email to all Moneyfactscompare.co.uk users.
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Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfactscompare.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best savings rates available in the UK. Compare and apply today.
Long-term bonds edge higher as short-term accounts fall.
The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.
This week's selection includes an increased two-year fixed ISA from Aldermore, and a five-year fixed rate mortgage from first direct.
Alongside a new Moneyfacts Annual Star Rating, the ‘Easy to Open’ logo and filter will help consumers identify fuss-free accounts.
Alongside a new Moneyfacts Annual Star Rating, the ‘Easy to Open’ logo and filter will help consumers identify fuss-free accounts.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best savings rates available in the UK. Compare and apply today.
Long-term bonds edge higher as short-term accounts fall.
The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.
This week's selection includes an increased two-year fixed ISA from Aldermore, and a five-year fixed rate mortgage from first direct.
Alongside a new Moneyfacts Annual Star Rating, the ‘Easy to Open’ logo and filter will help consumers identify fuss-free accounts.
Alongside a new Moneyfacts Annual Star Rating, the ‘Easy to Open’ logo and filter will help consumers identify fuss-free accounts.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.