Fixed rate savings

Fixed rate savings are a type of savings account that offer a fixed rate of return on the day of investment for an agreed period. This helps to protect the saver against changes to the Bank of England’s base rate.

An advantage of fixed rate savings is that you know exactly what rate of interest you will receive for the agreed period.

The downside of a fixed interest savings rate is that you are tied into it for the agreed period and if interest rates rise then there is likely to be better rates of interest available on other types of savings accounts.

Many fixed rate savings providers impose strict restrictions with minimum monthly deposits over the fixed period accompanied by interest rate penalties that last the entire agreement and limited or no access to funds.

	BM Savings launch one-year fixed rate bond at 3.50% BM Savings have launched a new one-year fixed rate savings bond that pays 3.50 per cent interest.
	Yorkshire BS launches short term fixed rate bond Yorkshire Building Society has introduced a new savings bond offering a competitive rate and a choice of monthly or annual interest payments.
	Cahoot to launch one year fixed rate bond at 3.65% Cahoot are set to launch a one year fixed rate savings bond that pays 3.65 per cent interest.
	National Counties BS withdraws 42nd issue savings bond Savers who want to open the 42nd Issue Savings Bond with National Counties only have a short time to do so, as the mutual is taking the product off the market.
	Tesco Bank launch one-year fixed rate saver account paying 3.25% Tesco Bank has launched a new one-year fixed rate saver account that pays 3.25 per cent on balances above £2,000.