The average rate paid by a fixed bond with a term over 550 days dropped to 5.11% at the start of October, according to Moneyfacts’ data. This is the first time this rate has fallen since March 2023.
Over the past week we have seen large movements in the savings market, with multiple providers increasing rates across their variable account products, in response to the base rate increase to 0.25% in December 2021.