Savers warned as average fixed savings rates fall to lowest levels for more than a year Some average fixed savings rates, where funds must be "locked" away, have plummeted to their lowest in at least a year, according to a financial information website.
The one-year fixed bond rate dropped to 4.31%, its nadir since June 2023, while the average longer-term fixed bond rate descended to 3.93%, the lowest since March 2023; these longer-term accounts are those exceeding 550 days.
One-year fixed Isa rates fell to 4.18%, the lowest since June 2023, and longer-term fixed Isas to 3.88%, the lowest since April 2023.
Finance expert Rachel Springall from Moneyfacts commented: "Savers looking to secure a guaranteed return may be disappointed to see average fixed rates on bonds and cash Isas drop to their lowest levels in over a year.
Moneyfacts reported that the average rate for accounts requiring notice before access was just 4.21% at the beginning of this month, marking its lowest since October 2023.
