Banks and building societies are continuing to target savers willing to lock their money away in a fixed-rate bond, a move that appears to be paying off.

Latest Moneyfacts.co.uk data shows that in August, 37 per cent of savers were looking for a fixed-rate account, up from 29 per cent at the start of the year. By comparison, those looking for easy access declined from 32 per cent to 27 per cent.

The highest rates continue to be offered on bonds with a five-year term, but Moneyfacts figures show that 78 per cent of those searching for fixed-rate bonds are looking for no more than a two-year commitment.

Michelle Slade, spokesperson for Moneyfacts.co.uk, says, ‘Providers are choosing more than ever before to use their savings book over the money markets to fund their lending activities. Savers prepared to lock their money away can find top rates as much as 2 per cent higher than those available on an easy access account.

‘Despite the highest rates being offered for a four or five year commitment, savers don't appear to be tempted, concerned that once bank base rate increases, their money will be locked into an account which will be uncompetitive in the future.’

Slade adds, ‘Those providers that really want to tempt savers money are offering top rates for a one or two year commitment. Access to funds appears to have become less important in this low interest rate environment as savers look at alternative options to maximise the returns on their money.’