Home | Savings Accounts | ISAs | Savings Bonds | News
You are here: Home » News » Your wealth is your bond, suggests MoneySupermarket

Your wealth is your bond, suggests MoneySupermarket

Savers whose fixed-rate savings bonds are due to mature should to look for new options to maximise their saving pots, according to MoneySupermarket.com.

The comparison site suggests savers could miss out on more than £477 if they fail to switch products once their fixed-rate bond expires.

The company compared interest rates across a number of bonds during their term and once expired, and calculated the interest that could be saved by switching to find a better deal.

By switching to a more competitive rate this autumn, such as State Bank of India’s one-year fixed-rate bond with an AER of 3.33%, it claims, savers could earn £499.50 in interest when the bond matures next year.

Kevin Mountford, head of banking at MoneySupermarket, said: “Autumn has traditionally been a peak period for people renewing fixed-rate bonds and many savers will be seeing their bonds reach maturity over the next two or three months.

“The fixed-rate bonds that are currently available represent a great way of maximising returns as long as savers can afford to lock their money away for the term, and remember to check when the term matures.”

He added: “Some providers will automatically enrol you into another bond if you fail to respond to any maturity notification or fail to act, locking away your savings for the term of the product, or they could be placed in an account paying a low rate of interest.

“It’s important to remember that once the bond reaches maturity, the product has served its purpose, it’s time to get online, shop around and switch to a more competitive deal. Savers need to be quick as some of the best products may not be available for long.”

Contact Us | Privacy Policy | Terms of Use