Best fixed-rate bonds disappearing fast

The best fixed-rate bank accounts are fast disappearing from the shelves of high street banks and building societies, research by Moneynet has discovered.

Keeping a watchful eye, Moneynet saw top deals from the Post Office, Melton Mowbray, Principality, Cahoot, Britannia, the Co-operative Bank, and Skipton
Building Society disappear - some of them only days after they were released.

The accounts that were pulled were paying interest at between 3.7% on a one year bond and 5.35% on a five year bond.

“One of the main reasons for these bonds having such a short shelf life is down to people coming to the end of a very attractive deal from one or two years ago, trying to lock in to the very best rate they can find as a replacement,” said Andrew Hagger of Moneynet.

Savers coming off a one-year deal could have been earning as much as 5.75%, Hagger said.

Meanwhile, those who locked in to a two year deal in December 2007 are now waving goodbye to interest rates as high as 6.45%.

Research by Moneynet earlier this year found that only one in five variable-rate savings accounts offer savers any real return on their investment.

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