Savers are being urged to quickly secure long-term savings bonds offering returns of 5 percent before they're taken off the market. The rates exceed the current inflation rate of 2 percent.
Despite last week's Bank Rate cut, savings rates have remained fairly steady, but industry specialists anticipate potential fluctuations ahead. Rachel Springall from Moneyfacts analysts advised: "Savers sitting on the fence to invest their cash with a fixed rate bond may wish to do so quickly, as the top rates are not guaranteed to be there for long."
For those looking to maximise earnings, investing £20,000 in the top five-year fixed bond from Al Rayan Bank at 4.55pc could yield returns of £4,983 upon maturity. A fall in the rate to 4 percent however would mean a loss of £630 on that same deposit, and should it drop further to 3.55 percent, the interest earned would decrease by a substantial £1,172.
She further commented: "There may be presumptions among some savers that competition is lacking across fixed rate bonds, but that would be untrue. There have indeed been brands readjusting their position in the market to better manage the flow of funds or in a reaction to their peers dropping rates, but in contrast there are also brands very keen to grab the spotlight to draw in deposits.