Fixed rate bonds - the highest savings rates may soon disappear

Fixed rate bonds have recently been paying the highest savings rates ever seen, with savings rates of over 7%. But fixed rate bonds have started to see their high savings rates decline as the pressure on money markets eases. Fixed rate bond providers are starting to reduce their high savings rates and withdraw their products. In fact, over the last couple of weeks Moneyfacts.co.uk has witnessed over 30 changes to fixed rate bonds.

The highest savings rates with fixed rate bonds have started to fade away, so if you want to earn more than 7% on your savings with a fixed rate bond you'll need to act fast. Some fixed rate bond savings providers are withdrawing their fixed rate savings bonds as they are fully subscribed and the fall out from Lehman Brothers may also result in more fixed rate bonds being withdrawn.

Fixed rate bonds still offer some of the highest savings rates available. In the short-term fixed rate bonds savings best buys, ICICI's HiSAVE fixed rate 12-month bond offers the highest savings rate of 7.20% gross. In the long-term fixed rate bonds best buys, Icesave's fixed rate savings 2 and 3 year bonds offer a high savings rate of 7.06% gross.

There are still high savings rates available with fixed rate bonds, but these high savings fixed rate bond deals won't be around for too much longer!