SAGA's withdrawal of one year fixed rate bond

Commenting on SAGA’s withdrawal of its one year fixed rate bond, Kevin Mountford, head of savings at price comparison website moneysupermarket.com,said: “Frankly I am not surprised we are seeing fixed rate bonds being removed.

“These products tend to have a limited shelf-life as they are often based on fixed amounts of money. Once filled, these offers are removed and a subsequent one released – albeit at a revised price to reflect money market trends.

“The recent excitement in the savings market has led to more uptake than expected and providers have met targets in double quick time. As a result, products offered by providers such as SAGA and Stroud & Swindon have not stayed on the shelf for as long as usual.

“As interest rates start to come back down, people should look out for good fixed rate options. If they can afford to lock their cash away for three months, the new Abbey bond at over 6.8 per cent AER could be worth looking into.”