Fixed rate bond race is on as deals become fully subscribed

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."

Click to compare leading fixde rate bonds »

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Growth Bonds

Income Bonds

Provider	Plan Name	Maximum Potential Growth Return*	Term	More Info
	Barclays 5 Year UK Super Tracker	75% after 5 years	5 years
	This 5 year structured investment plan returns 3x any growth in the FTSE 100 index up to a maximum of 75%.
	Investec FTSE 100 Enhanced Kick-Out Plan	9.5% per year	Up to 5 years
	9.5% a year if the FTSE 100 is above its starting level at any of the first 4 anniversaries of the plan.
	Investec FTSE 100 5 Year Deposit Plan	40% after 5 years	5 years
	This 5 year capital protected structured investment plan offers a maximum return of 40% at maturity.
	Barclays Wealth Target Growth Plan	50% after 5 years	5 years
	5 year term offering 50% return, if the final index level is above initial index level.
	Skipton Building Society Guaranteed Double Asset Bond	See Details	5 1/2 years
	1/3 invested in a 6% 1 Year Fixed Rate Bond. 2/3 invested into a FTSE 100 Index Linked Bond which returns 100% of any positive growth up to a maximum return of 60%.

* Maximum Growth Yields are not guaranteed and subject to certain conditions

Provider	Product Name	Income Yield	ISA Option	More Info
	Barclays Wealth Regular Income Bond	6.50% pa†
	6 Year Structured Income Bond with an annual yield of 6.50% or monthly at 0.53%. Can be used for ISA transfers & SIPP investment up to £500,000.
	Investec 5 Year FTSE 100 Income Deposit Plan	5.40% pa††
	5 Year Capital Protected Structured Investment Plan with an annual yield of 5.40% or a monthly yield of 0.43%.
	The Royal Deposit Plan	4.00% pa
	3 year fixed rate deposit plan that returns 4.00% a year. The plan can be used for cash ISA investment or cash ISA transfer.

† Guaranteed income payments.
†† Income payments are dependent upon the FTSE 100 Index.