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How UK savings account holders can still secure attractive interest rates of up to 4.90% p.a. on fixed-term deposits

Despite recent interest rate cuts by the Bank of England (BoE), savers in the UK can still achieve strong returns through fixed-term deposits.

2 days ago | Richard van Brehm

“In times of economic uncertainty, it’s wise to rely on stable and secure forms of investment. Fixed-term deposits offer exactly that – security, predictable returns, and currently very attractive interest rates.”

Fixed-term deposits allow you to place a specific amount of money for a fixed term at a guaranteed interest rate. During this period, the funds are locked in, but in return, you receive the certainty of fixed earnings. This means savers know exactly how much interest they will earn by the end of the term.

BoE interest rate cut: What does it mean for savers?

The Bank of England has recently lowered its base rate by 0.25 percentage points to 3.0%, in response to ongoing economic challenges. While this move is intended to stimulate economic growth, many banks continue to offer highly competitive rates on fixed-term deposits

Why fixed-term deposits remain an attractive option

  • 1. Security and Stability – Your Capital is Protected: 
    In a financial world dominated by volatile markets and unpredictable assets like cryptocurrencies, fixed-term deposits offer a rare sense of stability. Thanks to the Financial Services Compensation Scheme (FSCS), savings of up to £85,000 per bank are protected.
  • 2. Attractive Interest Rates – Act Now! 
    Despite the BoE’s base rate cut, many UK banks are still offering interest rates as high as 4.90% p.a. on fixed-term deposits. That’s because banks are eager to secure long-term deposits and reward savers accordingly.
  • ​3. Predictable Returns – Plan Your Future with Confidence
    Unlike stocks or other variable investments, fixed-term deposits guarantee a steady return. This is especially valuable for those seeking financial planning certainty and stable income.
  • ​4. Flexible Terms to Suit Your Needs:
    Whether you want to lock in your money for 6 months, 1 year, or even 5 years, fixed-term deposits offer a wide range of terms tailored to different financial goals.

Financial experts recommend securing these attractive interest rates now.

Since the end of the ultra-low interest era, fixed-term deposits have rarely been so rewarding – especially as inflation has declined much more sharply than savings interest rates.

Marianne and Peter Thompson “The planning security and the attractive interest rates convinced us. I can now retire with peace of mind,” says Peter (60). “I feel secure and am glad that we opted for this stable investment,” adds Marianne.

Fixed-term deposits outperform inflation

A recent Bank of England outlook signalled optimism for the UK economy. Despite delays in the recovery, inflation has steadily fallen. Since February, savers have been enjoying real interest gains from fixed-term deposits – with average rates exceeding inflation

BoE Base Rate – Historical Development Until 2024

According to the International Monetary Fund (IMF), the ECB should continue to lower interest rates given declining inflation across Europe. In April 2024, Germany recorded an inflation rate of just 2.2%.

But UK savers often struggle to find the best offers. Many local banks underperform, and comparing options can be confusing.

How to find the best fixed-term deposit offers

With expert support and a strong financial network, retail investors now have access to attractive savings offers previously reserved for institutions. Some providers offer interest rates ranging from 3.00% to 4.90% p.a., with minimum deposits starting from £10,000.

Depending on your risk profile, experts may also complement your savings strategy with dividend-generating assets to further boost returns.

Get your personalised savings plan today

A team of financial experts is offering a free consultation to develop tailored savings strategies suited to your needs and risk tolerance. This includes personalised recommendations with potential average returns of up to 4.90% p.a.

Advantages for you:

  • Interest rates of up to 4.90% p.a.
  • Protection against inflation
  • Access to top-tier fixed-term deposits
  • ​Personalised investment planning
  • ​Sustainable, green investment options
  • ​Free, no-obligation proposal
Disclaimer / RISK NOTICE

The information provided here is for general information purposes only and does not constitute investment advice. It does not constitute an offer to purchase or the solicitation of an offer to buy fixed-term deposits or other financial products. This information may not be used as the basis for an offer or solicitation to buy. A decision to invest in fixed-term deposits should only be made after a thorough examination of the complete documentation and risk information and after consulting a legal, tax and investment adviser.

Investing in fixed-term deposits is a financial investment product that differs from physical investments, such as the purchase of property or the lease of land. It involves the investment of capital at a fixed interest rate over a certain period of time, whereby the investment risk can be classified as lower compared to shares, funds or other securities. Nevertheless, risks such as interest rate changes, changes in the issuer's credit rating or other market influences that can affect the value of the investment cannot be completely ruled out. However, these risks can be minimised by choosing a fixed-term deposit account with a solid bank or a reputable financial institution and observing the deposit protection.