Lock in to fixed rate savings deals while they last

Savers looking for a good deal are being urged to lock in soon amid fears the best rates may disappear.

On Thursday, the Bank of England voted to maintain its base rate at 5.25 per cent in response to lower-than-expected inflation data released last week.

Economists say this may indicate that interest rates will not need to rise further to bring inflation under control.

Anna Bowes, of rate scrutineer Savings Champion, says: ‘If the base rate has peaked then some of the best rates could be pulled quickly as they may have been overpriced. If you are looking to lock in, now is the time to do it.’

Atom Bank cut the interest on its fixed-rate bonds by up to 0.29 of a percentage point last week. It now offers a six-month, fixed-rate bond paying 5.3 per cent. Kent Reliance reduced its one-year fixed-rate Isa interest by 0.07 of a percentage point to 5.71 per cent.

But savers can still find fixed-rate deals at about 6 per cent. National Savings & Investments Guaranteed Growth Bond pays 6.2 per cent on a one-year bond. And Nationwide Building Society pays a market-leading 8 per cent on its Flex Regular Saver account.You can pay in up to £200 a month.

Savers who want to put aside larger sums can save up to £500 a month into Yorkshire Building Society’s Loyalty Regular eSaver which has a rate of 7 per cent.