Those whose one-year fixed-rate savings bonds are set to come to the end of their maturity soon will face a sharp drop in returns, according to moneysupermarket.com.
With starting rates of around seven per cent AER 12 months ago, savings bonds from Bradford and Bingley, First Bank of Nigeria and Nottingham Building Society will offer 0.75 per cent or less after maturity.
Kevin Mountford, head of banking at moneysupermarket.com, warned savings bond holders that, although they have been sheltered from low interest rates for a while, a shock may be in store.
He said: "It will be interesting to see whether or not these savers look to riskier investments, such as equities backed vehicles, in order to maintain returns."
A new fixed-rate savings bond has recently been launched by over 50s financial specialist Saga Personal Finance, offering a "highly competitive" AER of 3.82 per cent.
Fixed-rate savings bond customers set for loss
Financial Services > Saving Accounts > News
Fixed-rate savings bond customers set for loss
Tue, 09 Jun 2009
Recommended links
Current savings accounts rates and providersCompare savings accounts
Best fixed rate savings bonds
Fixed rate accounts and bonds
Savings account protection
ISA guide
Saga launches new savings bond
Skipton launches 4 year savings bond
Savings bonds offer hope, expert claims
| Savings Account news |
|---|
| Unexpected expenses eat into savings of over 55s - Thu, 09 Sep 2010 |
| Survey: Men twice as likely to have secret savings account - Tue, 07 Sep 2010 |
| Rise in Isa subscription amounts is no big surprise, says expert - Thu, 02 Sep 2010 |
| More News |
