Trick to bagging a top fixed rate deal that doesn’t stop you switching if a better deal

Banks are starting to withdraw their popular, top-paying, one-year fixed-rate bonds and Isas.

No doubt this is because nervous savers are pouring money into savings accounts to shelter it from the market turbulence caused by Donald Trump’s tariff wars.

More savings providers are likely to follow suit and cut their top rates, too, as they find themselves pushed to the top of the best buy tables and attract more money than they’d like.

But after this initial reaction, rates could go in either direction.

They could fall further if the Bank of England cuts interest rates sooner and faster to support the economy in the wake of the market turbulence. Its next meeting is on May 8 and anything could happen between now and then.

Or rates could even go up to tackle higher inflation, which could come about as a result of the tariffs pushing up the cost of products and materials.

Cuts: More savings providers are likely to cut their top rates as they find themselves pushed to the top of the best buy tables and attract more money than they’d like

That makes it very tricky to decide whether or not to go for a fixed-rate account – especially if you are among the millions who are seeing their current fixed-rate deals coming up to maturity.

For those who like the certainty of knowing exactly how much interest you will earn over the year, a fixed rate is a must – and right now they pay around the same as easy-access accounts.

Here’s a trick that will allow you to lock into a good deal in case rates continue to fall – but offer you some leeway in case rates rise quickly, leaving you regretting your decision.

Put your money into a fixed-rate Isa rather than a fixed-rate bond. Providers who offer fixed-rate bonds won’t let you touch your money during the term, so if rates go up you are stuck on a lower rate.

But it is different with fixed-rate Isas. The rules say that they must give you access to your money during the term and your interest is tax-free.

The best one-year fixed-rate cash Isas only pay slightly less than the top taxable bond equivalent – for example, Cynergy Bank pays 4.65 per cent on its bond and 4.55 per cent on its Isa.

Online, the best one-year fixed-rate cash Isa comes from Cynergy Bank at 4.55 per cent. But if you come out of it early there is a high charge – double the usual 90 days of interest.

Vanquis Bank pays 4.42 per cent and Paragon, Aldermore and United Trust Bank 4.3 per cent, all of which charge the usual 90 days’ interest – or around £10.50 for each £1,000 you withdraw.