7% savings gone in a flash

Rachel Thrussell, Head of Savings at Moneyfacts.co.uk, comments: “The fixed rate savings frenzy fizzled out almost as quickly as it started, with three out of the five best buy rates being withdrawn this week, and rates falling below 7% once again.

Stroud & Swindon BS – Fixed Rate Bond Issue 57 paying 7.05% withdrawn 17.9.07

Standard Life Bank – 6 Month Fixed Rate Bond paying 7% withdrawn, and replaced paying 6.75%

West Bromwich BS – eBond 11 paying 6.86% withdrawn 17.9.07

“Rates at these levels were never sustainable in the longer term; rather they were used to entice savers deposits quickly. But it was surprising to see their availability lasting less than a week.

“Perhaps savings providers are deterred from offering such high rates in the current climate for fear of misinterpretation that ‘needing’ to find additional savings deposits will spark fears of a liquidity problem.

“With rates still very competitive in the fixed rate market, savers looking to bag themselves one of these deals need to act sooner rather than later as they may not be here to stay.”