A growing number of fixed rate bond deals offering competitive interest for savers are being withdrawn or having rates reduced, according to Moneyfacts.co.uk.

Since the beginning of November, Moneyfacts.co.uk has found that 62 per cent of product changes to its website have been in relation to product withdrawals – with many of these being replaced with deals offering lower returns.

For instance, on 1 November this year, the highest rate offered on a one year fixed rate bond stood at 3.95 per cent, but this has since fallen to 3.75 per cent in December.

Meanwhile, on November 1, savers looking to lock away their money for the long-term could enjoy a rate of 5.35 per cent on a five year fixed rate bond, compared to the highest rate offered today of 5.15 per cent.

While Moneyfacts.co.uk claims that fixed rate bonds have been the “hardest hit”, other savings products have not been immune to the withdrawals.

Competitive savings products like West Bromwich Building Society’s Branch Bonus 2 account, paying 3.35 per cent in interest has recently been withdrawn, while Manchester Building Society’s Premier Notice 5 account, offering a return of 3.31 per cent has also been taken off the market.

Commenting, Michelle Slade, spokesperson for Moneyfacts.co.uk, said that while providers have attempted to attract savers by offering increased rates on fixed rate bonds in recent months, “the tide has turned and many top deals are being withdrawn.

“Providers appear to be returning to more traditional ways of raising funding, reducing reliance on savers’ money.

“The decreasing availability of top rates means that when a market leading deal is launched, it is soon over-subscribed. The recent launch of the top paying one year bond from Melton Mowbray BS lasted just one day,” she said.

Ms Slade added that savers need to keep a close eye on the savings market and move fast when top deals are launched, “otherwise they are likely to miss out”.

© Fair Investment Company Ltd