Darren Cook, Head of Analyser Products at Moneyfacts, said:

“The unsettled period seen six months ago was evident, as savers harboured cash and sought to invest this within a safe haven over the shorter term, and our demand data echoes this attitude as there was much less of a desire for fixed rate bonds than there is now.

“The perception of savers appears to be leaning towards safeguarding their cash over the next two to three years, and our demand data for fixed rate bonds overall shows a notable rise, compared to March 2021. Indeed, some savers may even feel rates will not rise substantially in the months to come and are keen to review the rates on offer right now, off the back of increasing rates on fixed rate bonds.

“The guaranteed return a fixed rate bond provides is proving an alluring option for savers and, until there are more signs of the economy settling, those with a reasonable sum of cash to invest may well continue to seek out retail fixed bonds for a higher return than they would receive in an easy access account.

“Even though there is speculation that a bank base rate rise may be on the horizon, security and finding the current better fixed rates is the option savers appear to be scrutinising. Indeed, not every saver will be comfortable to turn to riskier deposits and diversify their savings pot until more signs of economic recovery surface.”