Where are the top fixed-rate bonds for savers this September?

Lock-in: Fewer fixed rate deals have been coming on the market in recent weeks

Top fixed-rate savings bonds now pay up to 3.46 per cent before tax (2.77 per cent after)  to those prepared to tie up their cash for 12 months.

Leeds BS’s latest one-year fixed-rate bond — available through branches or via the post — pays 3.46 per cent (2.77 per cent) and gives you access to a quarter of your capital during the term.

The most you can put into this account is £5,000 or £10,000 in joint accounts.

Elsewhere, Skipton BS pays 3.45 per cent (2.76 per cent) on its internet-based one-year fixed-rate deal, while Tesco has raised the rate on its one-year bond, which you run over the phone or internet, to 3.4 per cent (2.72 per cent).

Alternatively, Allied Irish Bank (GB) phone or postal bond also pays 3.4 per cent (2.72 per cent).

If you prefer to stick to the High Street, then C&G, part of Lloyds, has a new bond at 3.1 per cent (2.48 per cent ) fixed until October 31 next year.

But with inflation running at 5.2 per cent in August, as measured by the retail prices index, savers are losing out — as their interest rate is less than the rise in the cost of living. However, inflation is expected to fall next year to nearer 2 per cent.

If you are happy to tie your money up for two years, you can earn 3.96 per cent (3.17 per cent) with the Post Office, where the deposit taker is the Bank of Ireland.

The top rate for three years remains C&G’s Step bond, which pays an average 4.25 per cent (3.4 per cent) over the term.