Printer Friendly

Fixed-rate bonds now on the market for just 30 days.

SAVERS must get cracking, because the length of time a fixed-rate bond is on the market has fallen to just 30 days, the lowest level since December 2008 (28 days), says Moneyfacts.co.uk.

Before base rate hit its all-time low of 0.5%, the average length of time bonds hung around was typically 100 days, with a 158-day peak in March 2006.

Today, bonds are on sale for an average of 30 days - against 70 days two years ago, and 102 days five years ago.

In recent months, average fixed-rate bonds have also seen a fall in rates, particularly on longer term bonds, which may be fuelling the speed at which these bonds are snapped up.

The average five-year bond rate has fallen from 4.02% at the start of April to just 3.88% today. Sylvia Waycot, spokeswoman at Moneyfacts.co.uk, said: "Fixed-rate bonds continue to be the darling of savers and the banks and building societies have seized this opportunity by increasing the product choice from 274 in 2010 to 313 today.

"However, in recent months, there has been a downward trend on the rates of return these bonds promise, resulting in savers rushing to secure the best deals, which is why today's bonds hang around for an average of 30 days."
COPYRIGHT 2012 MGN Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2012 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Business
Publication:Western Mail (Cardiff, Wales)
Date:Jul 7, 2012
Words:216
Previous Article:MBNA offers consumers new 'Rate for Life' card.
Next Article:Auto-enrolment pension scheme offers hope but won't end worries; Jeremy Gates looks at the nation's money issues and asks whether the auto-enrolment...
Topics:

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters