• The average one-year fixed bond rate at 3.97% gross is now 0.05% higher than the average five-year fixed bond at 3.92%. The rate gap was 0.10% a month prior.
• In March 2025, the rate gap between the average one- and five-year bonds was 0.20%, as they sat at 4.16% and 3.96%, respectively.
• A year ago, the average one-year bond paid 4.43%, while the average five-year bond paid 3.80%, a rate gap of 0.63%.

Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, said:

“Inflation-beating fixed bonds take up just one quarter of the savings market. Over the past month the number of fixed bonds paying above inflation has fallen by over 100, and with further spikes expected, savers may find it increasingly harder to find an attractive deal. Adding to the struggle, many of the top bonds pay less than 1% in real terms.

“Despite the cut to base rate last month, the top rates have remained solid, some even saw small increases. However, on average savers will now receive less than 4% across all fixed terms, the last time this was the case was March 2023.

“Two years ago, the short-term market-leading rates peaked at over 6%, at the time these were the highest since 2008. Those savers who were lucky enough to secure a top deal and deposit £10,000 could now be enjoying over £1,000 in interest. However, if they decide to reinvest today, due to tumbling rates, they will earn almost £350 less by the time their two-year term ends. It is crucial that savers are not deterred, as many fixed bonds are still very competitive and choosing not to do anything could leave them significantly worse off.”