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.

	Skipton BS launches five-year child savings bond paying 3.0% The Skipton Building Society has launched a new five-year savings bond aimed at parents investing on behalf of their children paying 3.0 per cent.
	Skipton BS launch online 7-year savings bond paying 3.50% The Skipton Building Society has extended the availability of its inflation-busting 7-year fixed rate savings bond paying 3.50 per cent to online savers.
	Skipton BS launch 7-year savings bond paying 3.50% The Skipton Building Society has unveiled a new seven-year savings bond that pays interest of 3.50 per cent AER/gross.
	Leeds BS unveil fixed rate savings bonds paying up to 2.50% The Leeds Building Society has unveiled a range of new fixed rate savings bonds that offer investors a higher rate of up to 2.50% or 2.27% if they want to receive a monthly income.
	Co-op offers fixed rate savings bonds paying up to 3.0% The Co-operative Bank has unveiled a range of fixed rate savings bonds, available from between one to three years, paying up to 3.0 per cent.