Investors are being urged to snap up the best fixed savings deals as official data suggests rates might have peaked.

The average rate on a fixed deal fell from 3.05% to 2.89%, according to figures released by the Bank of England last week. This is despite Bank rate remaining at 0.5% since March.

Rates on fixed savings are generally linked to those in the wholesale markets, which have fallen in recent weeks because interest rates are expected to stay low for longer.

The news will be a blow to many people, especially those in retirement who rely on returns from cash deposits to supplement their incomes.

Michelle Slade of Moneyfacts, the financial data firm, said: “In the past few weeks rates on fixed bonds have started to fall, but they still provide some of the most competitive in the market.

“If customers do not need access to their money, then a fixed-rate bond is still a good option.”

One-year fixed deals have fallen from an average 3.23% to 3.17% over the past month, while two-year deals have dropped from 3.75% to 3.74%. Three-year deals have, however, remained static at 4.08%.

Rates on four and five-year deals rose to an average of 4.24% and 4.66% respectively.

“Nearly two-thirds of customers looking for fixed-rate bonds are after no more than a three-year commitment.

“Savers are worried that when Bank rate rises they will be locked in to an uncompetitive account as rates on bonds inevitably rise,” said Slade Savers who need access to their money would be better off with an easy-access account. “Rates on these accounts continue to rise, despite no change in Bank rate,” said Slade.

The average easy access account has gone up from 0.77% to 0.82% over the past month.

The best one-year fixed deal is offered by the State Bank of India, which is paying 3.75%. If you prefer something closer to home, Halifax pays 3.5% over one year.

The State Bank of India is a full member of the UK’s Financial Services Compensation Scheme.

Over two years, the AA is paying 4.35%, while the best three-year deal is from Barnsley building society, which pays 4.7%.

For those looking for easy access, David Black of Defaqto, the analyst, warns that savers should keep an eye on bonus rates, which are common among such deals. Bonuses can help a deal top the best-buy tables but are temporary and can be changed suddenly and without prior notification.

The best easy-access deal, for example, is offered by West Bromwich with its Branch Bonus Account 2 at 3.35%. This includes a 0.6 percentage point bonus for a year.

After the bonus, the rate falls to 2.75%. However, the building society also offers a non-bonus deal at 2.85%.

Times Recommends

• How to sell your home in a downturn
• How to boost your spending power
• Unemployment benefits explained