Experts say that savers looking to grow their money need to be on the hunt to find the top-paying fixed rate bonds currently available in the UK.
Many providers of personal and business bank accounts have recently cut interest rates on their savings products, experts say. However, there are some banks and building societies that have recently launched new accounts that top the best-buy tables to remain competitive in the savings account market.
Nationwide recently cut its rates for new savers. The financial service provider’s old 4.2 per cent three-year fix was replaced with an offering that only returns anywhere between 3.65 per cent to 3.95 per cent before tax – the final rate being dependent on the balance carried in the account.
However, Barnsley Building Society has come to the rescue with a 4.05 per cent internet-based three-year fix. Other banks and building societies offering excellent deals on fixed rate bonds with three year terms include Saga, with a4.2 per cent product only available to savers over the age of 50 and Sainsbury’s Bank, with a less restrictive offering of 4.10 per cent on their own three-year deal.
Despite the rate reduction in Nationwide’s main fixed rate product, its affiliated businesses are still remaining competitive. Dunfermline, Derbyshire, and Cheshire building societies, the three subsidiaries of Nationwide, are all offering a 4.15 per cent interest rate product across all their branches.
One-year fixes remain relatively competitive across the majority of the banking industry, as well. The best buys are currently internet banking provider FirstSavewith their 3.5 per cent fix, while Barnsley BS and Tesco trail it only slightly with 3.4 per cent fixes respectively.
Among the best deals from large banks and building societies with a large branch network is Santander at 3.15% (2.52%). The Nationwide trio pay 3.2% (2.56%) fixed for one year through their branches.
On two-year deals Santander pays 4% (3.2%) on balances of £25,000 or more fixed until July 7, 2013 — the top rate in the High Street.
For smaller balances Halifax pays 3.8% (3.04%) on £500 plus.