Tag Archives: fixed rate bond

Bitesize: Which fixed-rate bond term is most popular?

Louise Johnston

How have falling retail deposit interest rates affected savers’ behaviour?  One place to look is the market for fixed-rate bonds, which give a guaranteed interest rate for a set period of time.  These rates tend to be higher than instant access accounts, because customers must tie up their deposits to receive the higher rate. Fixed-rate bonds represented around 40% of new time deposits in January 2017. Continue reading

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Filed under Banking, Monetary Policy