Top fixed-rates fall by a third since January

FIXED-RATE deals on bonds and cash Isas pay only a fraction more interest than variable deals.

The top one-year bond, from Swedish Ikano Bank, pays just 1.45 pc. The rate is 30 pc less than the top deal of 2.06 pc on offer at the start of the year.

With internet-based Ikano Bank, your money is not covered by the UK compensation scheme if the bank runs into trouble. Instead, you will have up to €100,000 (around £86,000) cover through the European scheme.

In the High Street, the best you can do is a lower 1.2 pc from Virgin Money, 1.15pc from Leeds BS or 1.1pc from Metro Bank. At 1.2pc, you will see just £120 interest on each £10,000.

If you don’t want to tie up your money for a full year, Newcastle BS pays 1.1pc fixed until March 31 next year through its branches.

For two years, Ikano and Paragon Banks pay 1.65pc online, while in the High Street, the best you can do is 1.35pc from Kent Reliance or 1.25pc from Leeds BS.

Cash Isa rates are even worse, as not all providers offer them. The top oneyear deal is just 1.3pc online from Shawbrook Bank. The next best is 1.2pc from Virgin Money and Aldermore Bank.

For two years, Shawbrook pays 1.4 pc, while Metro Bank pays 1.3 pc.

Don’t tie up money you might need in a fixed-rate account. Some providers won’t give you access to your cash during the period. Where they do, they charge a fine — as much as a quarter of your annual interest.