Fixed-rate bonds have had another boost, with short-term deals offering the most attractive rates.
The best comes from Shawbrook Bank.
It raised the amount it pays on its nine-month bond to 4.04 per cent yesterday, putting it just ahead of Allica Bank’s 4 per cent and Atom’s 3.95 per cent.
Shawbrook Bank raised the amount it pays on its nine-month bond to 4.04% yesterday, putting it just ahead of Allica Bank’s 4% and Atom’s 3.95%
One-year bonds continued to climb, too, with the top rates from Cynergy at 4.45 per cent, Shawbrook at 4.44 per cent followed by Close Brothers and Atom both at 4.4 per cent.
You can earn a smidgen more for two years with the best rate at 4.5 per cent from Cynergy Bank. Longer-term bonds, however, are not rising at the same pace.
The top rate for five years is 4.6 per cent with Tandem, followed by 4.58 per cent at United Trust Bank and 4.55 per cent with Close Brothers.
Fixed-rate bonds are priced according to what money market traders think will happen down the line.
With inflation expected to plummet from its current sky-high 10.4 per cent, they are betting on lower rates to come.
