The top fixed bonds have fallen in the past month and consumers are urged to prepare ahead of base rate cuts Moneyfactscompare.co.uk reveals the state of play in the fixed bond market for savers.
· The top two-, three-, four- and five-year bonds fell month-on-month, with the top one-year bond remaining unchanged.
· The top one-year bond remained at 4.65% gross, which is 0.01% lower than the top five-year fixed bond at 4.64%. The month prior, the top one- and five-year bond paid 4.65%.
· In November 2024, the rate gap between the top one- and five-year bonds was 0.21%, as they sat at 4.85% and 4.64%, respectively.
· A year ago, the top one-year bond paid 5.18%, with the top five-year bond paying 4.95%, a gap of 0.23%.
| Savings market analysis – top fixed bond rates | |||||||
| Nov-22 | May-23 | Nov-23 | May-24 | Nov-24 | Apr-25 | May-25 | |
| Top one-year fixed bond rate | 4.60% | 4.82% | 6.05% | 5.18% | 4.85% | 4.65% | 4.65% |
| Top two-year fixed bond rate | 5.00% | 4.91% | 6.00% | 5.05% | 4.65% | 4.65% | 4.54% |
| Top three-year fixed bond rate | 5.00% | 4.90% | 5.97% | 4.85% | 4.72% | 4.65% | 4.61% |
| Top four-year fixed bond rate | 5.05% | 4.60% | 5.75% | 4.54% | 4.54% | 4.65% | 4.54% |
| Top five-year fixed bond rate | 5.10% | 4.71% | 5.80% | 4.95% | 4.64% | 4.65% | 4.64% |
| Top interest rates based on a £10,000 deposit as at the start of the month. | |||||||
| Source: Moneyfactscompare.co.uk | |||||||
· All average fixed bond rates fell month-on-month.
· The average one-year fixed bond rate at 4.12% gross, is now 0.21% higher than the average five-year fixed bond at 3.91%. The rate gap was 0.17% a month prior.
· In November 2024, the rate gap between the average one- and five-year bonds was 0.45%, as they sat at 4.24% and 3.79%, respectively.
· A year ago, the average one-year bond paid 4.58%, while the average five-year bond paid 3.93%, a rate gap of 0.65%.
| Savings market analysis – average fixed bond rates | |||||||
| Nov-22 | May-23 | Nov-23 | May-24 | Nov-24 | Apr-25 | May-25 | |
| Average one-year fixed bond rate | 3.34% | 3.96% | 5.36% | 4.58% | 4.24% | 4.19% | 4.12% |
| Average two-year fixed bond rate | 3.67% | 4.03% | 5.27% | 4.30% | 4.02% | 4.05% | 3.99% |
| Average three-year fixed bond rate | 3.75% | 4.06% | 4.98% | 4.13% | 3.90% | 4.01% | 3.94% |
| Average four-year fixed bond rate | 3.92% | 4.01% | 4.78% | 3.96% | 3.91% | 4.12% | 4.00% |
| Average five-year fixed bond rate | 4.06% | 4.02% | 4.73% | 3.93% | 3.79% | 4.02% | 3.91% |
| Average interest rates based on a £10,000 deposit as at the start of the month. | |||||||
| Source: Moneyfactscompare.co.uk | |||||||
Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, said:
“In recent weeks the savings market has been more subdued and although many of the chart-topping rates have dropped since last month, they have not done so by any significant amount. Providers have slowed down their repricing, but this could be in preparation for the upcoming Bank of England base rate announcement where the general consensus among economists is to expect a cut. Despite the market-leading one-year bond remaining unchanged since last month, its average rate counterpart has seen the largest drop in seven months.
“In the past year, many of the top rates have tumbled, savers coming out of a one-year bond could now be £53 worse off in real cash terms. Additionally, investors with six months to go on their two-year bond will be left disheartened as they can stand to lose over 1% in interest by the time their money matures after accounting for several base rate cuts later this year. To make matters worse, with rising wage growth 1.9 million more taxpayers have been pulled into higher tax brackets since thresholds were frozen, meaning these savers will have halved their Personal Savings Allowance (PSA).
“Inflation remains above the Bank of England’s 2% target, so it is crucial that savers ensure they are not receiving a raw deal and secure the most competitive deals quickly. To receive the most benefit, consumers should consider locking away their cash for longer, but they need to evaluate their needs carefully as fixed bonds often do not permit any withdrawals for the whole term.”
