Stampede of savers sees deals pulled

Stampede of savers sees deals pulled

Savers keen to take advantage of competitive fixed-rate deals should get their skates on as providers are now withdrawing these products almost as soon as they are launched.

A new fixed-rate bond offered by Chesham building society on Friday 19 June proved so popular that it was pulled the following Monday.

The one-year fixed-rate bond had been offering 3.95% on deposits of at least £25,000. "This just goes to show the level of demand for a decent savings rate in the current environment," says Andrew Hagger of comparison site moneynet.co.uk.

Two top-paying fixed-rate bonds launched by Close Brothers last week have also seen a stampede of savers keen to lock away their cash.

Close is paying 4.5% for two years and 4.75% for three years as long as you invest at least £10,000 in its Premium Gold bonds, which top the best-buy tables and are available by post.

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But while Close claimed that the products would be available until 3 July, it has published an apology on the website advising consumers that they may be unable to get through to the client services team due to the "very high level of calls" it is receiving.

"I think that with the demand for market-leading rates and products selling so fast, a more appropriate label for these bonds may have been 'gold dust'," says Hagger.

Yet savers keen to maximise returns, with the Bank of England base rate languishing at 0.5%, can take advantage of other accounts that reward those who can put cash away for a fixed period.

For example, Nationwide building society launched several fixed-rate bonds last week, including a two-year issue paying 3.25% and a five-year bond paying 4.5%, on deposits from £1.

Newcastle building society, meanwhile, is offering a five-year fixed-rate individual savings account (Isa) paying 5% on a minimum investment of £1.

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