Falling bond rates and sticky inflation mean savers who stay loyal risk missing out on the most competitive returns. Moneyfactscompare.co.uk reveals the state of play in the fixed bond market for savers.
Last year the Moneyfacts Average Savings Rate was 3.75% while the top rate paid closer to 5%, meaning savers could have missed out on £120. Due to lower rates, in today’s terms that loss could be even bigger.
Moneyfacts survey data shows that one in four people are missing out on real returns because they have never switched savings accounts.
Top fixed bonds
- The top one-, two- and three-year bonds fell, with the top four- and five-year bonds remaining unchanged.
- The top one-year fixed bond fell to 4.45% gross, which is 0.19% lower than the top five-year fixed bond at 4.64%. The top five-year bond rate was higher than the top one-year bond a month prior by 0.14%.
- In April 2025, the top one- and five-year bonds both paid 4.65%.
- A year ago, the top one-year bond paid 4.95%, with the top five-year bond paying 4.64%, a gap of 0.31%.
| Savings market analysis – top fixed bond rates | |||||||
| Apr-23 | Oct-23 | Apr-24 | Oct-24 | Apr-25 | Sep-25 | Oct-25 | |
| Top one-year fixed bond rate | 4.54% | 6.20% | 5.25% | 4.95% | 4.65% | 4.50% | 4.45% |
| Top two-year fixed bond rate | 4.55% | 6.05% | 5.10% | 4.72% | 4.65% | 4.50% | 4.43% |
| Top three-year fixed bond rate | 4.60% | 5.95% | 4.85% | 4.72% | 4.65% | 4.50% | 4.45% |
| Top four-year fixed bond rate | 4.56% | 5.75% | 4.54% | 4.54% | 4.65% | 4.54% | 4.54% |
| Top five-year fixed bond rate | 4.65% | 5.80% | 4.95% | 4.64% | 4.65% | 4.64% | 4.64% |
| Top interest rates based on a £10,000 deposit as at the start of the month. | |||||||
| Source: Moneyfactscompare.co.uk | |||||||
Average fixed bonds
- The average one-year fixed bond rate at 3.99% gross is now 0.03% higher than the average five-year fixed bond at 3.96%. The rate gap was 0.05% a month prior.
- In April 2025, the rate gap between the average one- and five-year bonds was 0.17%, as they sat at 4.19% and 4.02%, respectively.
- A year ago, the average one-year bond paid 4.30%, while the average five-year bond paid 3.81%, a rate gap of 0.49%.
| Savings market analysis – average fixed bond rates | |||||||
| Apr-23 | Oct-23 | Apr-24 | Oct-24 | Apr-25 | Sep-25 | Oct-25 | |
| Average one-year fixed bond rate | 3.84% | 5.44% | 4.59% | 4.30% | 4.19% | 3.97% | 3.99% |
| Average two-year fixed bond rate | 3.93% | 5.35% | 4.32% | 4.06% | 4.05% | 3.90% | 3.90% |
| Average three-year fixed bond rate | 4.00% | 5.07% | 4.14% | 3.93% | 4.01% | 3.89% | 3.92% |
| Average four-year fixed bond rate | 4.02% | 5.00% | 3.94% | 3.87% | 4.12% | 3.90% | 3.94% |
| Average five-year fixed bond rate | 4.03% | 4.79% | 3.92% | 3.81% | 4.02% | 3.92% | 3.96% |
| 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:
“This year top fixed bond rates have tumbled by over 0.30% and, although one-year bonds saw one of the lowest month-on-month drops so far, inflation remains a significant burden which makes it harder for savings to generate real returns. It’s crucial that savers are proactively searching for the most competitive deals, especially if they pay below 3.8%.
“Loyalty is not always rewarded, and savers could be missing out on a significant cash bonus just by being more aware about where they put their money. Moneyfacts survey data shows that one in four people are missing out on real returns because they have never switched savings accounts. Last year the Moneyfacts Average Savings Rate was 3.75% while the top rate paid closer to 5%, meaning savers could have missed out on £120. Due to lower rates, in today’s terms that loss could be even bigger. Savers should keep an open mind when choosing a provider as challenger banks may be more generous with their offerings.
“On average, the gap between long-term and short-term rates is at its smallest since June 2023. With the future of interest rates still up in the air, some savers may see a greater incentive to lock their cash away for longer. Plus, fixed bonds remain a great way to beat base rate cuts. However, more than one in four women are missing out on top savings returns because they aren’t confident enough in their finances to lock it away in a fixed term account – compared to just one in seven men.”
Survey of 2,000 nationally representative UK adults carried out by OnePoll on behalf of Moneyfacts between 1 – 3 September 2025.
