Just when savers though things couldn’t get any worse, recent days have seen a number of the leading fixed rate bonds pulled from the market and replaced with new deals offering lower rates of interest.
There appears to be little sign of things improving any time soon after the Bank of England admitted it has considered cutting the base rate from 0.5 per cent to 0.25 per cent in an attempt to stimulate growth and avoid another recession.
But it’s not all doom and gloom, as despite falls in fixed rate bond rates, easy access rates remain strong with some even having risen.
Here, we look at whether now is the right time to lock your money away or whether you should hold fire and keep it in a flexible, high-paying easy access account for the time being… .
Swap rates – used by banks to set fixed-rate bond prices – have fallen, which has triggered the withdrawal of several competitive deals.