Market-leading fixed bonds offer equal returns across the board. Savers are urged to make the most out of their deposits. Moneyfactscompare.co.uk reveals the state of play in the fixed bond market for savers.
· All the top fixed bond rates rose month-on-month to 4.65%, with the top two-year fixed bond increasing the most by 0.12%.
· The top one- and five-year fixed bond rose to 4.65% gross. The top one-year bond rate was lower than the top five-year bond a month prior by 0.06%.
· In October 2024, the rate gap between the top one- and five-year bonds was 0.31%, as they sat at 4.95% and 4.64%, respectively.
· A year ago, the top one-year bond paid 5.25%, with the top five-year bond paying 4.95%, a gap of 0.30%.
| Savings market analysis – top fixed bond rates | |||||||
| Oct-22 | Apr-23 | Oct-23 | Apr-24 | Oct-24 | Mar-25 | Apr-25 | |
| Top one-year fixed bond rate | 4.20% | 4.54% | 6.20% | 5.25% | 4.95% | 4.58% | 4.65% |
| Top two-year fixed bond rate | 4.50% | 4.55% | 6.05% | 5.10% | 4.72% | 4.53% | 4.65% |
| Top three-year fixed bond rate | 4.60% | 4.60% | 5.95% | 4.85% | 4.72% | 4.63% | 4.65% |
| Top four-year fixed bond rate | 4.45% | 4.56% | 5.75% | 4.54% | 4.54% | 4.54% | 4.65% |
| Top five-year fixed bond rate | 4.55% | 4.65% | 5.80% | 4.95% | 4.64% | 4.64% | 4.65% |
| 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 rose month-on-month, with the four-year increasing the most by 0.13%
· The average one-year fixed bond rate, at 4.19% gross, is now 0.17% higher than the average five-year fixed bond at 4.02%. The rate gap was 0.20% a month prior.
· In October 2024, the rate gap between the average one- and five-year bonds was 0.49%, as they sat at 4.30% and 3.81%, respectively.
· A year ago, the average one-year bond paid 4.59%, while the average five-year bond paid 3.92%, a rate gap of 0.67%.
| Savings market analysis – average fixed bond rates | |||||||
| Oct-22 | Apr-23 | Oct-23 | Apr-24 | Oct-24 | Mar-25 | Apr-25 | |
| Average one-year fixed bond rate | 2.73% | 3.84% | 5.44% | 4.59% | 4.30% | 4.16% | 4.19% |
| Average two-year fixed bond rate | 3.01% | 3.93% | 5.35% | 4.32% | 4.06% | 4.02% | 4.05% |
| Average three-year fixed bond rate | 3.16% | 4.00% | 5.07% | 4.14% | 3.93% | 3.96% | 4.01% |
| Average four-year fixed bond rate | 3.30% | 4.02% | 5.00% | 3.94% | 3.87% | 3.99% | 4.12% |
| Average five-year fixed bond rate | 3.40% | 4.03% | 4.79% | 3.92% | 3.81% | 3.96% | 4.02% |
| 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 a surprise turn, savers can expect to earn equal returns across all fixed bond terms, as market-leading rates have risen across the board, which has edged up their respective averages. To add to the intrigue, they are all offered by the same provider which could suggest there is less desire for competition. Regardless, it is encouraging to see providers adjusting rates in a more positive direction.
“Despite short-term rates dropping over the past six months, those savers expecting their two-year bond to mature soon will be pleased to note that they will now be better off on a real-terms basis. If they locked £10,000 into the market-leader in April 2023 they would have earned £931, but could now earn £20 more by the time their bond matures in 2027. But, with income tax thresholds frozen until 2028, higher-rate taxpayers will need to be more cautious with their investments to ensure they do not breach their Personal Savings Allowance (PSA).
“Rates could tumble further soon if cuts to the Bank of England base rate persist, so it is crucial consumers act fast to avoid missing out. However, if investors wish to keep up the momentum of their deposits, fixing for longer could be a more appealing option as they will be able to beat base rate cuts for longer.”
