Top deals on one-year fixed-rate bonds are dropping below 6 per cent and the best ones are rapidly being withdrawn from sale.
Savers looking for a high-paying bond are being warned to lock into one soon, in case rates fall further still.
The top rate for one year is now 6.1 per cent from Ahli United Bank through savings platform Raisin but this is expected to disappear by the end of the week if not before.
Close Brothers and Cynergy Bank both pay 5.95 per cent but these deals are not expected to last long either.
Longer-term bonds are also down, with the top two-year rate at 5.95 per cent — also from Cynergy Bank.
Disappearing deals: Savers looking for a high-paying bond are being warned to lock in to one soon in case rates fall further still
The top five-year bond is now 5.8 per cent from JN Bank or 5.65 per cent from Tandem.
The reductions follow the move by National Savings & Investments (NS&I) to close its popular 6.2 per cent one-year fixed-rate bond earlier this month.
This top-paying account set the bar high and forced other banks and building societies to up their game.
Since NS&I withdrew the Guaranteed Growth Bonds, competition has cooled. Fixed-rate bonds are priced by what the money markets think will happen to interest rates.
There is now a mounting expectation that the Bank of England will cut rates next year, particularly given the uncertain economic outlook.
The base rate was left unchanged at 5.25 per cent last month, following a run of 14 consecutive rises.
Tax-free cash Isa rates are also falling with a top rate of 5.72 per cent for one year from Charter Savings Bank and 5.7 per cent from Virgin Money. NatWest Bank pays 5.65 per cent for two years.
This post first appeared on Dailymail.co.uk
