Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Average five-year Fixed Rate Savings Bond Falls Below 2.00%

Personal_Finance / Saving Bonds Oct 24, 2016 - 03:11 PM GMT

By: MoneyFacts

Personal_Finance

Long-term fixed rate bonds used to be the premier solution for many savers looking for a decent return on their savings. However, Moneyfacts.co.uk data can reveal the disappointing news that the average five-year fixed bond rate has fallen to a record low, now standing below 2.00%.


Charlotte Nelson, Finance Expert at Moneyfacts.co.uk, said:         

“With over 100 rate cuts to five-year fixed rate bonds since January, it is easy to see why this section of the market has plummeted to another all-time low. This will hit savers used to using their long-term savings to supplement their income hard, particularly as the average rate has fallen by 0.96% in just one year.

“Providers not wanting long-term funds have chosen to drop out of the market, with the number of institutions offering five-year fixed rate bonds falling. Given this lack of competition in the market, it is little wonder why rates have fallen. But customers seeking these deals are now facing not only lower rates, but poor choice as well. 

“Five years ago, savers would have been able to get a rate close to 5.00%. Those savers who opted for a fixed rate back then will be severely shocked to find scarce choice today, as there are only two deals offering 2.00% or more over a five-year fixed term.

“The low interest rate environment looks like it is here to stay for some time, and providers simply do not want to be caught out by paying higher rates than may be necessary in the future. With the added effect of the uncertainty in the economy that we are currently experiencing, it is no wonder that savings rates have dropped to this new low.

“With rates like these, savers must be really wary about locking their funds into a fixed rate bond for any significant amount of time. However, the fact still remains that long-term fixed rates offer savers some of the relatively better rates. Savers will therefore have to weigh up the benefits of these compared to a shorter-term offer while doing their best to weather the current unpredictable environment.”

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in