Check Your Fixed Rate Bonds and Reap Savings Rewards

CHESTER, England, October 5, 2011 -

Savers could miss out on over GBP500 by failing to check when their bond expires

Current average AER up by 0.55per cent compared to the end of September 2010

Savers with fixed rate bonds coming to an end need to start looking at options for their saving pots, according to research from MoneySupermarket.com

Analysis from Britain’s number one comparison site shows savers could miss out on up to GBP511 if they fail to switch products once their fixed rate bond expires. The analysis looked at the interest across a number of bonds both during their term and once expired, and calculated the interest that could be saved by switching to find a better deal. For example, someone who invested GBP15,000 in Turkish Bank’s One Fixed Rate Bond in 2010, the interest earned during year one would have been GBP435 on an AER of 2.9 per cent. However, once this bond matures the AER drops to 0.1 per cent, meaning they could be missing out on GBP420 in additional interest in year two.

Yet by switching to a competitive rate such as Cheshire Building Society or United National Bank’s Fixed Deposit account with an AER of 3.51 per cent, someone could achieve GBP526.50 in interest on maturity- an increase of GBP511.

Kevin Mountford, head of banking at MoneySupermarketsaid: “Since the financial crisis, Autumn has been a peak period for people renewing fixed rate bonds and many savers will be seeing their bonds reach maturity over the next two or three months. With the products on offer this Autumn even more competitive than last, consumers looking to move savings should act now to take advantage of strong rates.

“Savers cannot always rely on their banks to remind them their product term has come to end, so they must be vigilant and go as far as writing it in their diary or sticking a post-it note on the fridge to remind them. If you fail to respond to any maturity notification or fail to act, some providers will automatically enroll you into another bond, tying your savings up for the term of the product, or they will place your savings in an account paying a poor rate of interest. Our analysis shows a significant amount can be saved simply by shopping around for a better deal, so it really pays to be alert. The fixed rate bonds that are currently available represent a great way of maximising returns as long as savers can afford to lock their money away for the term, and remember to check when the term matures.

“With signs indicating Base Rate will remain low for the foreseeable future, locking money away for a fixed term of even a year could be a good option for savers looking to get some extra bang for their buck. It’s important to remember that once the introductory offer has ended and the product has served its purpose, it’s time to get online, shop around and switch to a more competitive deal. Savers need to be quick as some of the best products may not be available for long.”

moneysupermarket.com’s customer commitment

• No other site compares more prices or products
• We are independent so only find the best deals for you   
• The price you see is the price you pay - you don’t need to go direct and you won’t get a better deal doing so   
• Your details are safe with us and we wont sell them to anybody

moneysupermarket.com compares (at 26^th August 2011)

• 101 car insurance providers and 78 home insurance providers
• 13 broadband providers and 19 energy providers   
• 29 unsecured loan and 5 secured loan providers
• 63 mortgage lenders and 29 credit card providers
• 69 savings providers and 34 current account providers.
• Over 874,000 mobile phone deals

We promise to be clear and impartial

• All the products in our full search results tables are displayed in a completely unbiased manner.
• We don’t add fees or commissions on to the prices we compare.
• There may be times when another site compares more companies than us on a particular product, perhaps because of market changes or technical issues. You’ll be able to see this and know we are working hard to fix it.

We promise to be trustworthy

• We never use your data to make unwanted sales calls or send you spam.
• We never pass your personal information to third parties unless you give us permission to do so.
• Even if you choose to receive additional information from us, you can opt out at any time. 
• We promise to be supportive.
• You can use our community forum to get information and help from other customers.

If you need further help or support, you can contact our sales advisors, customer services agents.

For further information, please contact:

Kevin Mountford
Head of banking
+44(0)787-237-8537
kevin.mountford@moneysupermarket.com

Paul Lawler
PR Manager (Financial Services)
+44(0)1244-370317
paul.lawler@moneysupermarket.com 

.