Fixed Rate Savings Bonds – Competition Driving Rates Higher

Savings rates have been in the doldrums for what must seem like an eternity to people looking for a safe and reasonable return on their nest egg.

With lenders needing money to keep up with the increased demand for mortgages, we’ve started to see interest rates start to pick up, nothing dramatic, but gradual small steps which is a good start.

However, don’t expect to see the big high street banks increasing rates anytime soon, the latest mini rate war is driven by agile, hungry competitive providers, including the likes of Shawbrook Bank, Zopa, Aldermore, Atom Bank and Gatehouse Bank – all are covered by the Financial Services Compensation Scheme (FSCS).

As we come out of lockdown and things gradually return to normal, hopefully we’ll see this turn in fortunes for savers continue well into the summer – fingers crossed eh!

Here’s a run down of the latest best buy fixed rate bond deals as of this morning on 21st May 2021

 
Provider Fixed Term Interest Rate AER
Atom Bank 1 Year 0.85%
Shawbrook Bank 18 Months 0.80%
Shawbrook Bank 2 Years 0.95%
Zopa 3 Years 1.03%
Aldermore 4 Years 1.10%
Gatehouse Bank 5 Years 1.40%

 

 

 

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