I'm back on track on fixed rates

I'm back on track on fixed rates

Despite that, I stuck my neck out on Sunday, warning that today's best fixed-rate savings bonds would soon be for the chop. I have now been proven right, and faster than I had anticipated. I was just talking about the five-year fixed rate bond market, where returns depend on the outlook for interest rate movements.

Banks and building societies don't want to commit to paying a high rate of interest for five years, if they expect interest rates to drop in the next 12 months.

The closer we get to pay peak interest rates, the point at which the Bank of England stops hiking base rates and start thinking about cutting them instead, the more nervous they'll get.

When the BoE's monetary policy committee unexpectedly froze rates at 5.25 percent last Thursday, as I was urging them to do, banks were always going to have a rethink.

Especially since Bank Governor Andrew Bailey had suggested before the meeting that it was no longer clear that interest rates needed to keep rising.

Relatives on five-year fixed-rate bond rates actually peaked months ago. Now they have fallen out of shape.

Tandem Bank was leading the pack by committing to pay savers $5.85 percent a year through 2028.

Now that rate has gone down. He has cut it to 5.65 percent.