Fixed rate savings reach new highs

Rachel Thrussell, Head of savings at moneyfacts.co.uk, comments: “Today sees the launch of two new fixed rate accounts from Bank of Cyprus UK and West Bromwich BS which push fixed rates to a new high which we have not seen for five years.

Bank of Cyprus UK – one year UK bond pays 6.33% from £1
West Bromwich BS – Ebond pays 6.30% to 31.5.08 from £1K

“While Halifax has increased the rate on its 1 year Fixed Rate Web Saver to 6.30% from £500.

“These are great rates, but with another rate rise still on the cards, there is perhaps still room for further growth. The gap between the best-fixed and variable rates is widening, bringing back the reward for forgoing immediate access to your savings.

“Fixed rate deals can be a great addition to any savings portfolio, but given the choice of just one savings account, it must always be a instant access account, and in the first instance a tax free option such as an ISA is ideal.”