Fixed rate savings accounts offering 4% are making a come back

12 May 2009 / by Rachael Stiles
Savers are finally being offered some relief after seeing the returns from their cash dwindle over recent months, with the come back of fixed rate savings accounts, offering four per cent interest.

The 'plus fours' are back in vogue, according to Moneynet.co.uk, which has detected a rise in the number of four per cent fixed rate savings accounts to choose from.

While this does not reach the dizzy heights of last year, when savers would think nothing of securing a seven per cent deal for their savings, the appetite for long term savers has returned to the market, Moneynet has said.

Falling interest rates have left savers struggling to get a return on their savings in recent months, with hardly any four per cent deals on the market as recently as the end of February, but there are now about 40 fixed rate savings accounts offering between four per cent and 4.40 per cent interest.

The last few weeks have seen several competitive deals entering the market, Moneynet's analysis of the savings market has found, including an ICICI fixed rate savings account offering a rate of 4.40 per cent for five years.

The Halifax international regular saver also offers a rate of four per cent, in return for making monthly payments of at least £100 a month for 12 months.

"This renewed appetite for retail savings balances will be welcome news to savers up and down the land who will be hoping there's still more to come in the next few weeks," said Moneynet.co.uk spokesperson Andrew Hagger, commenting on the return of four per cent fixed rate deals to the savings market.

"Swap rates have been edging up over the last 10 days and may account for some of the better rates that are starting to appear on the shelves.

We may have started to move away from the low point on fixed rates, but whether this is the start of something more prolonged or a temporary blip, it's probably too soon to say."

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