Average one year bond rate falls

The availability of these accounts has continued to rise, however, from 101 last month to 139 today.

Louise Holmes, spokesperson for Moneyfacts.co.uk, commented:

“In contrast to an eight month high of 2.85% last month, the average one year bond rate has dropped to a fourteen month low of 2.63%.

“This will come as yet more disappointing news to savers who continue to be faced with a battle to achieve a decent return on their savings.

“Over the past few days Moneyfacts has seen a number of one year deals withdrawn or reduced by providers, which we believe to be the main factor impacting on the overall average figure.

“Despite a dip in the average rate, the number of one year bonds in the market currently stands at 139. This suggests that demand is high amongst investors prepared to lock their money away for a few months, rather than long term, during such unpredictable economic times.

“The market leaders in the one year bond market are offered predominantly by lesser-known providers, once again highlighting the fact that savers need to look beyond the high street in order to take advantage of the better deals.”