Fixed-rate bonds 'bouncing back'
While many savings accounts in the UK may be offering low interest rates, research has revealed that fixed-rate bonds interest is beginning to increase.
With many savings accounts in the UK currently offering relatively low interest rates, savers could be forgiven for looking around for alternative ways to save.Research by moneysupermarket.com suggests that fixed-rate bonds may offer one of the best ways to do this, as interest rates on the products are beginning to rise compared to the base rate.
The website found that the interest rates for the top five fixed-rate bonds is now 3.89 per cent on average, despite the base rate only being at 0.5 per cent. The gap between the two figures has not been wider since November last year.
Kevin Mountford, head of banking at moneysupermarket.com, said: "Savers haven't had much to be cheerful about of late, but some green shoots could now be emerging."
Meanwhile, research conducted by Sainsbury's Bank recently revealed that the majority of instant access savings accounts in the UK now offer interest rates of less than three per cent.
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