Fixed rate bond race is on as deals become fully subscribed

16/11/2009
Rebecca Sargent

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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ProviderPlan NameMaximum Potential Growth Return*TermMore Info
Barclays Wealth Defined Returns Plan44% after 6 years6 years 
6 year Capital Protected Structured Investment Plan offering a maximum return of 44%.
Investec FTSE 100 3 Year Deposit Plan19% after 3 years3 years 
This capital protected deposit plan offers a maximum return of 18% at maturity.
Investec FTSE 100 Geared Returns Plan62.5%5 years 
This 5 year structured investment plan offers a maximum return of 62.5% at maturity.
Barclays Wealth Defined Returns (Annual Kick-Out 90) Plan7.75% per yearUp to 6 years 
6 year structured investment plan that offers an opportunity for attractive pre-defined returns at 7.75% a year. Potential to kick-out after 3 yearsif the FTSE is above 90% of its starting level.
Investec FTSE 100 Enhanced Kick-Out Plan9.25% per yearUp to 5 years 
5 year structured investment plan offering a fixed return of 9.25% a year with the potential to kick-out after year one.
Barclays Wealth Defined Returns (Annual Kick-Out 100) Plan7.75% per yearUp to 6 years 
7.75% a year for the investment term, if final index level is above initial index level at any of the 6 anniversaries of the structured investment plan. Opportunity kick-out after 2 years.
Barclays 3 Year UK Super Tracker30% after 3 years3 years 
This 3 year structured investment plan returns 2x any growth in the FTSE 100 index up to a maximum of 30%.
Barclays 5 Year UK Super Tracker64% after 5 years5 years 
This 5 year structured investment plan returns 4x any growth in the FTSE 100 index up to a maximum of 64%.
Investec FTSE 100 Kick-Out Deposit Plan6.75% per yearUp to 5 years 
Structured deposit plan with two options offering returns of up to 6.75% per year. Potential to kick out after 2 or 3 years depending on the option.
Morgan Stanley FTSE Kick Out Growth PlanUp to 50%6 years 
This 6 year structured investment plan offers a maximum return of 50%.
Morgan Stanley FTSE Best Entry Growth Plan2.85 x FTSE 100 Growth6 years 
This 6 year structured investment plan offers a return of 2.85 times the FTSE 100 Growth.
Morgan Stanley FTSE Tracker Plus Plan1.2 x any positive growth in FTSE 1006 years 
This 6 year structured investment plan offers a return of 1.2 times any positive growth in the FTSE 100, with 80% capital protection.
Morgan Stanley FTSE Protected Growth PlanUp to 20%6 years 
This 6 year structured investment plan offers a maximum return of 20% with the option to kick out after 3 years.
Investec FTSE 100 5 Year Deposit Plan40% after 5 years5 years 
This 5 year capital protected deposit plan offers a maximum return of 40% at maturity.
* Maximum Growth Yields are not guaranteed and subject to certain conditions
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