The latest retail price index shows a rate of -1.6% so currently the outlook for savers is looking up as over the last couple of weeks the rates available on savings accounts has shot up and with the retail price index negative inflation busting returns are available.
With UK interest rates held at 0.5% by the Bank of England at the last monetary meeting it shows how desperate the banks and building societies are for you money as rates as high as 5% are currently available on savings accounts. This is partly explained by the latest figures released by the building societies association that showed they experience net withdrawals of £2,239 million in June from savings accounts.
The first thing to look at is how long you want to lock up you savings for? If you want instant access then the Alliance and Leicester online saver issue 5 is offering 3.15% with no penalties for taking money out and the rate includes a variable BONUS of at least 1.65% payable until 2 August 2010 and a minimum online investment of £1,000. Tesco are also offering an internet savings account offering instant access and paying an interest rate of 2.25%.
For those able to lock up their savings for a longer period of time Nationwide Building Society is offering holders of their flex account a range of fixed term bonds paying between 2.32% and 5.00% depending on the term and amount invested and these savings accounts from Nationwide Building Society offer a monthly or annual interest option. The minimum sum to open one of these savings accounts is £1.
If you don't have a flex account ICICI are offering a great range of fixed term bonds with the 1 year paying 3.45% the 2 year an excellent 4.35% and the 3 year fixed rate bond is paying 4.60%. ICICI is covered under the UK financial services compensation scheme and the minimum investment is £1,000. The interest on ICICI accounts is paid annually.
On all the savings accounts above you are covered under the fscs to the maximum of £50,000 so for those looking to save/invest more than this amount you might want to consider splitting your savings between different savings accounts providers.
So if you have not checked what interest rates your savings are currently earning might be time to check.
Details correct 08/08/2009 source http://www.carpetbagging.co.uk
