Brand Logo Moneyfacts Group plc
Telephone Icon T: 01603 476476 Email Icon E: enquiries@moneyfacts.co.uk LinkedIn Icon

Good news for savers as fixed bonds rise across all terms

Image of Moneyfacts.co.uk Brand Logo Image of Moneyfacts.co.uk Brand Logo Image of Moneyfacts.co.uk Brand Logo
Caitlyn Eastell, Apprentice Press & PR Assistant
Caitlyn Eastell, Apprentice Press & PR Assistant 01603 476169 Email Caitlyn
02/04/2025

Good news for savers as fixed bonds rise across all terms

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.

Good news for savers as fixed bonds rise across all terms

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%.
  • 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

 

Moneyfacts top fixed bond rates

 

  • 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

 

Moneyfacts fixed bond average rates

 

 

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

 

Moneyfacts top fixed bond rates

 

  • 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

 

Moneyfacts fixed bond average rates

 

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.”

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.”

Notes to editors

Pioneering financial comparison technology for over 35 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfactscompare.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

Notes to editors

Pioneering financial comparison technology for over 35 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfactscompare.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

Contact Us If you're looking for extra comment, a chart or more information, then please give us a call. We are always more than happy to help.
Rachel Springall Press Officer / Finance Expert
Caitlyn Eastell Apprentice Press & PR Assistant