With the Bank Of England base rate stuck at its unprecedented low of 0.5% since March 2009, savers may be becoming disheartened with low interest rates and escalating inflation. Some are even turning their backs on saving and investments all together. With a gloomy financial forecast, our savings and investments are now more important than ever and it pays to be clued up about the best saving products on the market.

Yes, we are in the grips of a tough economic recession. But instead of this article painting yet another bleak picture of our economic woes, there are still options available for investors wanting to make a small return on their investments.

Whilst interest rates on fixed rate bonds have fallen over the last couple of years, they still beat the rates offered by easy easy-access savings accounts available on the high street. Opting for a fixed rate bond or by switching to another bank entirely may mean that your savings are working as hard as they possibly can.

For example, one such basic fixed bond available by a high street bank offers an interest rate of 2.47% for a minimum £1 deposit over a 6 month term. This compares with the saving account available from the same provider offering a tiny interest of 0.45%.

There are a few factors that need to be considered when deciding whether a traditional saving account or fixed rate bond is the best option for you and your money. Firstly, you need to weigh up how important access to your money is. Unlike a savings or current account, with fixed rate bonds there is usually a limited amount of access to your account, if none at all. There may also be a charge if you wish to deposit an extra amount of money, withdraw or terminate your account.

If however you can afford to lock your money away for a set period of time then a fixed rate bond is the better investment option. It may also help those savers who just can’t resist spending their money as they simply will not be able to access it.

Of course, just how much money you have to invest will also sway your investment decision. The interest rates available on these said investments increase with the amount and term of the bond contract. If you are in the financial position to deposit a large lump sum for a long period of time then a fixed rate bond will eventually reap much larger rewards than a traditional savings account.

Some truly sceptical economists have commented that the Bank of England base rate could yet fall to 0.25% in a desperate attempt to boost our economy. If this turns out to be the case then a fixed rate bond would offer the security of providing a better, albeit still small, interest rate.

Figures suggest that savers have noticed the benefits of fixed rate bonds as often the best bond deals become oversubscribed very quickly and then are withdrawn completely. At the end of July 2011, MoneyFacts.co.uk found that the average length of time a fixed bond was available on the market had fallen to 37 days. Although there have been no recent figures for 2 months it is likely that this time period has dropped further still.

This means that you may have to be really quick of the starting blocks if you are considering a fixed term product such as a fixed rate bond. Financial comparison websites often update the latest fixed rate bonds and best bond deals so that you can find the most suitable fixed rate bond for your money.