![]() ![]() Rates on bonds typically increase as the term gets longer as a reward for savers locking up their cash, but they are at parity at the moment because analysts expect interest rates to fall in the coming year. However, they have been steadily climbing in recent weeks, surpassing the 4.71pc one-year bond were paying in October. Returns on fixed-term bonds soared following the mini-Budget in September 2022 before coming back down again after the measures announced were reversed in the Autumn Statement a month later. ![]() These are also the highest rates on the market.Ī saver who puts £50,000 in the account would earn £2,500 in interest after a year. The bank is also paying 5pc on two, three, four and five-year bonds. Isbank, which is offering the best-buy deal, is among a number of so-called challenger banks raising rates as they compete for savers’ money. ![]() The top one-year bond now pays 5pc – the highest rate since 2009, according to the analyst Moneyfacts.īut experts are recommending savers seriously consider longer-term bonds which could be very lucrative if expectations of the future direction of interest rates come true. Savings rates have hit a 13-year high ahead of the expectation that the Bank of England will raise the central interest rate yet again next week. ![]()
0 Comments
Leave a Reply. |