£13bn floods out of bonds in just a year

SAVERS continue to abandon fixed-rate bonds in favour of easyaccess accounts.

The number of savers looking for a fixed-rate deal dropped by almost 10 pc in the past month, according to research from data monitors Moneyfacts.

Over the past year, a massive £13 billion has flowed out of fixedrate bonds, Bank of England figures show.

Recently, rates on bonds from building societies and new banks have edged up — so those coming to the end of a one-year bond can increase their return if they renew now with a top-paying provider.

This time last year, the best you could do was 1.38 pc from Charter Savings Bank. Now, Atom Bank pays 1.95 pc on its account you run over your smartphone or tablet, while internet- based Charter Savings Bank pays 1.81 pc.

In the High Street, the best you can do is 1.4 pc from Yorkshire and Skipton building societies, up from a top 1 pc this time last year.

Fixed-rate cash Isas continue to lag. The top one-year deal from Charter Savings Bank, launched last week, pays 1.36 pc, while Virgin Money and Leeds BS offer 1.35 pc for a year.

But this is still an improvement over last year, when the top rate was 0.96 pc.