SAVERS URGED TO GRAB A GREAT FIXED RATE BEFORE THEY DISAPPEAR

24/08/2009 by bill.

5.4% for five years still available from Barnsley’s e-Bond

Consumers looking for a guaranteed return on their savings are urged to look at some of the excellent rates currently available on fixed rate savings before they are pulled from the market.

Fixed rate savings over the last five years have averaged at a rate of 4.75%, however Barnsley Building Society is offering a fixed rate for the next five years of 5.40% on its Online Bond. Barnsley’s full range of Online Bonds includes;

5 year fixed rate – 5.40% gross/AER
4 year fixed rate – 5.15% gross/AER
3 year fixed rate – 5.00% gross/AER

Sarah Lawrence, Senior Product Manager at the Society said: “The fixed rate Online Bonds are proving very popular in the current low interest rate environment. I would however stress that there is only limited availability for these products and I would urge savers to act quickly if they want to secure these rates on their savings. As with all products like this, it is likely that they will be withdrawn at very short notice.”

Sarah continued: “Some consumers are suggesting that they are resisting the current tempting fixed rate offers, believing interest rates will increase. Whilst it’s is likely that the Bank of England base rate will rise above it’s current 0.5% over the coming years, it is by no means certain that savings rates will increase in tandem. I believe that, considering the average performance of fixed rate savings over the peaks and troughs of the last five years, our three, four and five year fixed rate bonds offer members excellent, long term value. By waiting savings could miss out on significant returns.”

A recent survey* indicated that five year fixed rate savings rates had increased by more than 50% since March this year - from 2.86% to 4.86% - which supports Sarah’s comments that now is a great time to secure a fixed rate savings account. This is particularly important for those investors who rely on their savings for income.

The Barnsley Online Bonds can be opened with as little as £100 up to a maximum of £500,000, using the Society’s completely paperless application process. Anyone wishing to open a Barnsley Online Bond can do so at www.barnsley-bs.co.uk

*Independent rate compilers Moneyfacts

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