Best fixed-rate savings accounts to open now as top deals could vanish

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The Bank of England has pressed the pause button on the interest rate hike cycle.

In recent months, forecasts for where the base rate would eventually peak have fallen from a high of 6.5 per cent to 5.5 per cent.

But this week’s surprise inflation fall, to 6.7 per cent from 6.8 per cent, was enough to convince the majority of the Bank’s Monetary Policy Committee to hold the base rate at 5.25 per cent.

Savers will now be watching rates more closely than ever to see if today’s rate pause will drive down the best savings rates on the market.

Rates have hit highs not seen for more than a decade recently. At the start of this month, NS&I announced a massive rate hike on its one year fixed bond to 6.2 per cent.

But experts have warned that savers shouldn’t expect 6 per cent-plus fixed rate savings accounts like this one to stick around for long.

On Monday this week, James Blower of website Savings Guru said: ‘We think there is another week or so left on this account.’

Savers looking to fix while these rates are on a high may wish to do so now. 

We have rounded up some of the best fixed rate accounts on the market.

You can sign up for our free savings alerts to get the best savings deals in your inbox as they land.  

The 6.2 per cent rate on the Guaranteed Growth Bonds makes them the market leading one-year fixed bond. 

The next best one year fixed bond pays 6.11 per cent with Union Bank of India.

The minimum investment is £500, and the maximum is £1million in each issue. After one year, savers will have the choice to withdraw their cash or reinvest. Interest is paid on maturity.

Guaranteed Growth Bonds are taxable, unlike some NS&I products.

Ford Money: Two-year fixed bond – 6.05%

Savers wishing to lock in a fixed rate for two years could look at Ford Money’s two-year fixed bond, which pays 6.05 per cent interest.

The minimum amount to open the account is £500 and you can tuck away up to £2million. The interest your savings earn can be paid yearly or monthly. You can only open this account online, but once the account is open you can manage it online or by phone.

Your savings are protected by the FSCS. It protects up to £85,000 of the money you put in a Ford Money account.

Tandem Bank*: Five-year fixed bond – 5.85%

Savings Platform Raisin UK is offering a 5.85 per cent fixed-rate bond through Tandem Bank.

There is a £25 sign-up bonus included on top of this rate.

The minimum amount needed to open the account is £1,000, and the maximum amount you can put away is £85,000, which is protected by FSCS.

As a savings platform, Raisin UK offers access to multiple savings products and banks. It allows savers to manage all their savings through a single online app-based account.

You can also grab a 6.1 per cent rate over one-year through Raisin UK – and with the £25 bonus, and £10,000 deposited, that’s an equivalent rate of 6.34 per cent, better than the NS&I rate above.

Shawbrook’s flexible one-year fixed Isa is near the top of the table with a rate of 5.83 per cent. 

Virgin Money’s Isa pays more, at 5.85 per cent – but it is not flexible.

You can open the account with a minimum of £1,000 and the most you can put in this account is £250,000.

You can transfer in to Shawbrook’s Isa from cash Isas and stocks and shares Isas.

Secure Trust Bank offers the top two year tax-free rate of 5.75 per cent. United Trust Bank also offers the same rate.

Andrew Hagger, personal finance expert at MoneyComms, says: ‘Competition remains intense in the cash Isa market with many savers using tax-free accounts to mitigate their tax situation after exceeding their personal savings allowance, so I don’t expect to see rates dropping away much in the next couple of months.’