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Savings fix

Savers looking to give their funds a boost are turning to fixed-rate bonds.

Several one-year bonds offering rate over 3% have been launched over the past two weeks. For three years, the rate pushed through the 4% ¬barrier with Coventry, Yorkshire and Barnsley Building Societies paying 4.15%.

But those lumping for the three-year rate now are in peril of missing out on higher deals in the near future.

Andy Caton, corporate development director at Yorkshire Building Society, says: 'The market is concerned about inflation so the yields on government stock has risen and this has a knock-on effect on fixed-rate bonds.

'There is a lot of volatility around in the market so if you want certainty, current fixed-rate deals can offer a good deal.'

As usual, to earn higher rates you need to tie up your miney for a longer period. If the base rate rises, as financial forecasters predict it might, your seemingly savvy deal could end up being a duffer, so tread carefully!

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