When is a fixed rate account the best option?

If you are in need for solid and reliable savings, choose a fixed rate account. However, bear in mind that as with variable rates, they also have their pros and cons.
The choice of a fixed rate account should not be based on a personal forecast of the Bank of England’s base rate’s behaviour. Forecasting rate fluctuation is very difficult and often leads to mistakes. Take a fixed rate if you are willing to accept that you might get less from your money than you would if you had chosen a variable rate. It is all about gambling.

In addition, your money  should not be under the same fixed rate longer than three years. Inflation and other changes in the economy, might damage your original savings plan. Your choice should always rely on what your savings purpose is. A fixed interest rate is beneficial when you are putting aside money for school or university.
Before you sign an agreement, read carefully your bank’s terms and conditions to be aware of the penalties regarding early withdrawals. Once your fixed rate term is over move your money looking for the best rate.