Fixed-rate savings maturing soon? – what you need to know

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Tax, investments and pension rules can change over time so the information below may not be current. This article was correct at the time of publishing, however, it may no longer reflect our views on this topic.

A wave of cash is heading for the savings market as many fixed-rate terms come to an end. If we don’t make the most of it, we could lose over a billion pounds in interest.

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

2 October 2023

It’s been a year since savers flooded their cash into fixed-term savings. From July to September 2022, £7.9 billion was moved into fixed-rate bonds. From October to December, that figure exploded to £30.8 billion.

Most were fixed for just a year which means a wall of maturity, billions of pounds high, will be flooding back into the savings market over the coming months.

This article isn’t personal advice. If you’re not sure if something is right for you, seek advice.

Last October, the best one-year fixed rates were around 4.45%.

Since then, the Bank of England (BoE) has raised the base interest rate another 2.25%. You can still find one-year fixes around 6%, and that’s despite the BoE recently putting a pause on