Demand for fixed rate savings bonds nearly doubles

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Rachel Springall, Press Officer
Rachel Springall, Press Officer / Finance Expert T: 01603 476210 E: Email Rachel
03/11/2021

Demand for fixed rate savings bonds nearly doubles in six months

The latest risk, availability, and demand data from Moneyfacts Savings Analyser shows that demand for fixed rate bonds has almost doubled in six months.

  • 49.83% of people are looking for Fixed Rate Bonds, whereas in March 2021 only 28.42% of savers were doing the same.
  • People searching for popular accounts like Fixed Rate Bonds, Notice Accounts, Instant Access Accounts and Regular Savings Accounts constituted 76.66%, compared to 56.05% in March 2021.
  • A total of 21.34% of people are looking for ISA Accounts, compared to 19.48% in March 2021.
  • 2.31% of people are looking for Instant ISA Accounts and 11.00% of people are looking for standard Instant Access Accounts, compared to 5.44% and 9.18% respectively in March 2021.
  • Only 2.00% of people are looking for Children’s Accounts and 1.40% looking for Junior ISA Accounts, compared to 2.22% and 1.99% respectively in March 2021.

Demand for fixed rate savings bonds nearly doubles in six months

The latest risk, availability, and demand data from Moneyfacts Savings Analyser shows that demand for fixed rate bonds has almost doubled in six months.

  • 49.83% of people are looking for Fixed Rate Bonds, whereas in March 2021 only 28.42% of savers were doing the same.
  • People searching for popular accounts like Fixed Rate Bonds, Notice Accounts, Instant Access Accounts and Regular Savings Accounts constituted 76.66%, compared to 56.05% in March 2021.
  • A total of 21.34% of people are looking for ISA Accounts, compared to 19.48% in March 2021.
  • 2.31% of people are looking for Instant ISA Accounts and 11.00% of people are looking for standard Instant Access Accounts, compared to 5.44% and 9.18% respectively in March 2021.
  • Only 2.00% of people are looking for Children’s Accounts and 1.40% looking for Junior ISA Accounts, compared to 2.22% and 1.99% respectively in March 2021.


Moneyfacts demand data provides a unique insight into what consumers are searching for and is based on statistics obtained from visitors to Moneyfacts Savings API. Correct as of September 2021.

Fixed bond savings rate analysis

 

Oct-19

Oct-20

Apr-21

Oct-21

Average one-year fixed rate bond

1.31%

0.70%

0.43%

0.79%

Average two-year fixed rate bond

1.41%

0.77%

0.50%

0.85%

Average five-year fixed rate bond

1.88%

1.14%

0.88%

1.26%

Data shown is as at the first available day of the month, unless stated otherwise. Average rates shown are gross and based on a £10,000 deposit. Source: Moneyfacts Savings Analyser


Moneyfacts demand data provides a unique insight into what consumers are searching for and is based on statistics obtained from visitors to Moneyfacts Savings API. Correct as of September 2021.

Fixed bond savings rate analysis

 

Oct-19

Oct-20

Apr-21

Oct-21

Average one-year fixed rate bond

1.31%

0.70%

0.43%

0.79%

Average two-year fixed rate bond

1.41%

0.77%

0.50%

0.85%

Average five-year fixed rate bond

1.88%

1.14%

0.88%

1.26%

Data shown is as at the first available day of the month, unless stated otherwise. Average rates shown are gross and based on a £10,000 deposit. Source: Moneyfacts Savings Analyser

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.”

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.”

Notes to editors

Pioneering financial comparison technology for over 30 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.

Moneyfacts is the UK's leading independent provider of finance product data. For over 30 years Moneyfacts' information has been a key driver behind personal finance product decisions.

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 with ISDN (01603 230551) and Skype (Moneyfacts).

 

Notes to editors

Pioneering financial comparison technology for over 30 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.

Moneyfacts is the UK's leading independent provider of finance product data. For over 30 years Moneyfacts' information has been a key driver behind personal finance product decisions.

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 with ISDN (01603 230551) and Skype (Moneyfacts).

 

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Rachel Springall Press Officer / Finance Expert
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