Best fixed-rate bonds disappearing fast

by David Masters

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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Tags: bonds, fixed-rate, Moneynet, research, savings