Ten-year high for bonds

Commenting on a 13th provider offering a bond of over seven per cent, Kevin Mountford, head of savings at moneysupermarket.com, said: "It has been a decade since we have seen this many providers with bonds paying seven per cent or more.

"With the Post Office jumping on the seven per cent plus bandwagon, at 7.05 per cent, there are now 13 providers paying seven per cent or more on bonds. The last time we had this many was in 1998.

"The Principality currently heads the table with its fixed rate bond for the over 50s but this requires a minimum deposit of £10,000. Birmingham Midshires' offering of 7.11 per cent for all comers is therefore a very attractive proposition.

"Savers should now expect at least seven per cent on bonds and over six per cent on easy access savings. The question now is how high can rates go?"