Top fixed bond hits 5% for first time since 2024
This press release just in from Moneyfacts. What are your thoughts? Good for some? Get your money invested instead? Any insights, ASAP please.
Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk:
“For the first time since 2024, the market-leading fixed bond (details below) now pays a 5% return, with savers now able to lock this return in for three years. In recent years savers have been left short-changed in real terms, but this marks a positive spin that gives them the chance to make their cash work harder. For some, securing a competitive guaranteed return in the years ahead is crucial, particularly as household budgets are still under pressure.
“Regularly reviewing savings pots can make a noticeable difference to the amount savers can earn over time. Even if the gap may seem small, it can quickly translate into hundreds of pounds in extra interest. For someone with £20,000 to save, fixing at 5% for three years could mean securing around £3,000 in interest, compared with around £2,240 earned based on the current average new savings rate at 3.60%. Around £750 extra is not a small amount and teaches a valuable lesson that savers don’t need to have more money to get a better return, instead they may just need to move money they already have.
“However, fixed bonds are designed for those who are comfortable locking their money away for the full term, so savers should ensure they won’t need to access their cash before committing. Some of the best easy access rates also offer around 5%, making them an ideal alternative for those needing money at short notice, such as for emergency funds. The most competitive deals can be short-lived, so those considering the switch would be wise to act sooner rather than later.”
Investec Save, Fixed Rate Saver
- Pays 5.00% gross/AER yearly
- Three-year bond
- £5,000 minimum investment (£250,000 max)
- Withdrawals not permitted
- Further additions for seven days from account opening
- Opened and managed online