Bonds News Fixed Rate Bond Race Is On As Deals Become Fully Subscribed 18470132
Fixed rate bond race is on as deals become fully subscribed
16 November 2009 / by Rebecca Sargent
Savers looking for fixed rate bonds need to act fast as the average bond shelf-life fell to a new low last month, Moneyfacts.co.uk has claimed.
According to the financial information providers, the average shelf-life of a fixed rate bond was just 23 days last month, compared to March 2006 when the figure stood at 158 days.
Commenting, Michelle Slade, spokesperson for Moneyfacts.co.uk said: “The demand for fixed rate investments continues to increase as savers look to maximise returns.
“Such high demand means that bonds are being fully subscribed quickly, causing providers to pull many of the most competitive deals and replace them with new issues.”
According to further research by Moneyfacts.co.uk, 34 per cent of all savings internet searches are for fixed rate bonds, and the average amount invested now stands at £40,076.
And, as the maximum available interest rates on fixed rate bonds have fallen from 6.70 per cent to 3.95 per cent over the last year, savers are advised: “If you want to secure the best deal, then act fast.”
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| Provider | Plan Name | Counterparty | ISA Option | Term | Maximum Potential Return | More Info |
|---|---|---|---|---|---|---|
 |
FTSE 100 Enhanced Kick Out Plan | Investec Bank plc |  |
Up to 6 years |
10% per annum |
More Info > |
| Structured investment plan with the potential to mature after years 1, 2, 3, 4, 5 or 6. If the plan matures early it will return 10% times the number of years the plan has been in force. Also available for Stocks & Shares ISA and ISA transfer. | ||||||
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