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 - Switching deals
In need of a cash boost?Providers often entice new customers with cash incentives for moving current accounts. Compare deals and find out how to make the switch:
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
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 - Switching deals
In need of a cash boost?Providers often entice new customers with cash incentives for moving current accounts. Compare deals and find out how to make the switch:
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
While rates on short-term bonds continue to tumble, longer-term bonds are performing slightly better.
Time’s running out to lock in a competitive savings rate as providers continue to cut rates on their fixed bonds.
The top rate on one-year bonds fell from 4.95% at the start of October to 4.85% at the start of November, while the leading rate on two-year bonds fell from 4.72% to 4.65%. This is according to analysis of the savings market by Moneyfactscompare.co.uk.
These have fallen considerably from six months ago, when the leading one- and two-year fixed rates stood at 5.18% and 5.05% respectively.
“Despite a short but welcome return during October, fixed rate bonds paying 5% or above have yet again disappeared from the market,” Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk, explained.
“With the Bank of England moving to reduce base rate, it is possible that this decision will impact providers’ pricing strategies, so it is unlikely that we will see them make a comeback,” she continued.
Average fixed savings rates have seen a similar decline, with the average one-year bond falling from 4.58% to 4.24% over the past six months and the average two-year bond falling from 4.30% to 4.02% over the same period.
Longer-term bonds haven’t seen the same month-on-month drops as their shorter-term equivalents.
Even though the leading rates on three- and five-year fixed bonds are lower than six months ago, and significantly lower than last November, they held steady at 4.72% and 4.64% respectively between October and November.
Meanwhile, average rates on three- and five-year bonds fell by just 0.03 and 0.02 percentage points respectively between October and November. By contrast, the average one-year bond dropped by 0.06 percentage points.
This means that the gap between the average one-year bond and five-year bond has narrowed to 0.45 percentage points, compared to a gap of 0.65 percentage points in May 2024.
With savings rates expected to continue their decline after the Bank of England cut the base rate to 4.75%, savers can protect their money from further rate reductions by locking it away in a fixed-rate bond.
Those coming to the end of a one-year fixed bond may find rates are now lower than the rate their current bond pays. For example, the market-leading one-year bond in November 2023 paid 6.05% compared to 4.85% in 2024.
Despite this, it’s still worth reviewing your options and switching to the highest-paying savings account that best meets your requirements.
Being complacent and allowing your savings to languish in a low-paying account could mean you miss out on hundreds of pounds of interest, or potentially even more. For example, if your fixed-rate bond matures and you don’t actively move your money, a provider may automatically put it into an instant access account that pays relatively little interest.
“Consumers would be wise to act with haste if they spot an attractive deal, as they may have a shorter shelf-life,” Eastell noted.
“Savers who are more open to lesser-known brands, such as challenger banks, will find that typically they offer higher rates of interest,” she added.
By moving your savings into a fixed-rate bond, you will receive a guaranteed rate of interest for the length of the term, regardless of whether savings rates continue to fall.
So, as long as you can afford to lock away your money for a number of months or years, opting for a fixed rate bond can help you take advantage of the most competitive savings rates before they disappear.
Our charts are regularly updated so you can compare the latest savings rates, including easy access accounts, notice accounts and fixed-rate bonds.
All of our newsletters are available free by email to all Moneyfactscompare.co.uk users.
Send me Weekend Moneyfactscompare, Savers Friend, Companies Friend and selected third-party offers.
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.
The top rate for a two-year bond edges higher as leading notice returns dip below 5%.
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 a one-year bond from new savings provider Vida Savings, and a 85% LTV two-year fixed mortgage from HSBC.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best ISA rates available in the UK. Compare and apply today.
With savers depositing £3.1 billion in ISAs in October, make sure your hard-earned cash is receiving competitive returns.
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.
The top rate for a two-year bond edges higher as leading notice returns dip below 5%.
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 a one-year bond from new savings provider Vida Savings, and a 85% LTV two-year fixed mortgage from HSBC.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best ISA rates available in the UK. Compare and apply today.
With savers depositing £3.1 billion in ISAs in October, make sure your hard-earned cash is receiving competitive returns.
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.