Savers face an 'income precipice' as fixed rates fall While the most significant losses come from longer-term products, with four-year products showing the largest fall in investment income, those investors who put their money into one-year and 18-month bonds will see a slight rise in the returns they receive by reinvesting in the best-buy products currently available. However, despite offering the highest income rise in 2012, an 18-month fixed-rate product will benefit from only a 4pc increase in returns. This is due to a substantial drop in interest rates available on fixed-rate products currently on offer. For those investors in the 2.6 million fixed-rate products due to mature over the remainder of 2012 - particularly those four and five-year bonds set to expire in November - getting the best deal on your deposits makes sense. "As there could be a shock for savers whose fixed-rate bonds are maturing, it's important not to simply roll into whatever their current provider is offering," said Anna Bowes, director at SavingsChampion.co.uk. With many fixed-rate saving products, customers must advise the bank or building society on what they would like to do with the maturing funds, or risk the funds shifting to a default account. Savers with Halifax, for example, would see their money switched to its Mature Bond Fund, which pays just 0.1pc while those with Nationwide would move to its Capital Builder account which pays just 0.2pc. It is wise to use your Isa tax-free allowance and only invest money in a fixed-rate bond that you know you will not need for the duration of the fixed-rate period because early withdrawals tend to be either expensive or not permitted. Always remember to keep the balance below the £85,000 limit for protection from the Financial Services Compensation Scheme (FSCS). For those looking to move their money and lock in for the short term, Governor Money's one-year fixed-rate bond, which pays 3.5pc on deposits over £1,000 from July 13, is worth a look, according to Savings Champion. Those who deposit their money early, however, will only earn just 0.5pc until that date. Those with a more substantial deposit of £25,000 or more should look to Cahoot's one-year fixed-rate bond, which is paying 3.6pc until August 1 2013. A two-year fixed-rate bond from BM Savings, meanwhile, will pay 3.75pc on deposits over £1, with Allied Irish Bank GB offering 3.7pc on balances of £1,000 or more. Savers looking to lock in for the medium term should look to BM Savings or Close Savings which pay 4pc on deposits over £1 and £10,000 respectively. For a five-year fixed-rate bond, State Bank of India, which is covered by the FSCS, is paying 4.5pc on deposits over £1,000 to their existing customers who have a current or savings account, while BM Savings will pay 4.4pc on deposits over £1.