Savers hit again on maturing fixed-rate bonds

Savers with a fixed-rate bond could lose up to £1,000 a year as providers will often shift the money into savings accounts with different rates once that bond matures, according to moneysupermarket.com

This could lead to many savers left out in the cold and needing to turn to high interest credit cards to fund their spending.

The news is one of a number of concerns about the benefits of different types of savings accounts, with a recent report by uSwitch revealing that consumers who are trying to save money this year may be hampered by the slash in savings rates across the market.

Kevin Mountford, head of banking at moneysupermarket.com, said that there was some "inconsistency" amongst savings providers.

He commented: "Savers should be wary of locking away their money for any longer than a year or two."

Rumina Hassam, savings expert at uSwitch.com added that savers "haven't had an easy ride over the last six months".