The long wait's over for savers as rates hit 5%
Savers locking their money away for one year now can bag the best rates in more than 14 years.
Fixed-rate bonds have had yet another boost as interest rates continue to rise, with one-year deals breaching 5 per cent.
In recent months, savers have faced a dilemma over whether to fix or wait for better rates to come along. Those who waited have been rewarded.
Last week, Shawbrook Bank trumped others by raising its one-year rate to 5.06 per cent. It followed a swathe of banks edging their fixed rates up to 5 per cent.
Close Brothers, Zopa Bank and United Trust Bank now pay 5.01 per cent on their one-year bonds while Atom, Investec, Hampshire Trust Bank and Isbank, via savings platform Raisin, all offer 5 per cent.
Savers taking out bonds today can get more than double the top rate on offer 12 months ago 2.4 per cent. These are the best returns offered to savers in more than 14 years, according to rate monitor MoneyfactsCompare.
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Fixed-rate bonds rocketed after figures released last week showed inflation has remained higher than expected. Banks price their fixed deals according to what they think will happen to rates over the next years.