Fixed Interest Rate Bonds Shelf Life Hits New Low
Interest-Rates / Savings Accounts Nov 16, 2009 - 04:26 AM GMTBy: MoneyFacts
Savers looking to take out a fixed rate bond need to act fast after the average bond shelf-life fell to a new low of 23 days last month.
At its peak in March 2006, the average shelf-life of a fixed rate bond was 158 days.
Michelle Slade, spokesperson for Moneyfacts.co.uk commented:
“The demand for fixed rate investments continues to increase as savers look to maximise returns.
“Such high demand means that bonds are being fully subscribed quickly, causing providers to pull many of the most competitive deals and replace them with new issues.
“Historically the average shelf-life of a fixed rate bond was around 120 days, but this has fallen sharply as base rate has plummeted.
“Moneyfacts research shows that 34% of all savings searches are for fixed rate bond with the average amount invested standing at £40,076.
“Savers with maturing one year bonds will have seen the maximum interest rate available fall from 6.70% last year to 3.95%.
“Savers with average amount invested will have seen the interest earned on their money fall by £1,157 to £1,612.
“If you want to secure the best deal, then act fast.”
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