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Savers welcome rate freeze By Rebecca Atkinson
The Bank of England's decision not to slash interest rates in January may have been a blow to borrowers but has no doubt left many savers breathing a sigh of relief. However, the respite might be short-lived. Economists and other Unfortunately, many of the leading accounts on the market before Christmas have now been withdrawn, but there are still some good deals to be had. London Scottish Bank currently has a one-year product at 6.85% AER for deposits of at least £2,000. If you want a higher interest rate over a shorter period, then Stroud & Swindon has an account fixed at 6.91% AER until 12 August 2008, for deposits of at least £500. Or if you want a product fixed for two years, then London Scottish Bank is paying 6.7% AER on deposits of at least £2,000. Fixed-rate savings Fixed-rate products do offer more security against interest rate cuts, but if you haven't yet utilised your £3,000 ISA allowance for 2007/2008 then remember time is ticking as the new tax year starts on 6 April. An ISA ensures your savings are protected from the taxman, and the best headline rate on the market at the moment is from the Scarborough Building Society. Its 30-day Notice ISA pays 6.3% AER, but you will need to have at least £1,000 to put aside. If you have less to save then consider the Loughborough Building Society's 90 Day Notice Mini Cash ISA which has a AER of 6.1% on deposits of at least £1. Or if you need instant access to your money, then Kent Reliance Building Society is offering 6.05% AER on a minimum deposit of £1. For people that like to manage their money online, many banks and building societies offer internet savings accounts. The most competitive on the market at the moment is from Newcastle Building Society. Deposits of £250 plus will earn you an interest rate of 6.43% AER. Or you could opt for Bradford & Bingley's Internet Instant Access account with a 6.4% AER for deposits between £1 and £250,000. If you require instant access to your funds but would rather manage your money by post or telephone, then Heritable Bank continues to offer its Easy Access account paying 6.46% on deposits of at least £1,000. However, if you don't mind giving 90 days notice to access your money then Heritable will pay 6.51% AER on £1,000 plus deposits. Regular savers Or if you are committed to making regular savings, then Skipton Building Society comes out top with its Special Saver account paying 7.55% on contributions between £10 - £250 a month. The downside is you'll only have access to your funds when the account expires after 12 months. If you are keen to start saving for Christmas next year, the Skipton also offers a Christmas Saver account paying 7.6% AER on deposits of between £10 - £250 a month until 24 November 2008. Finally, if you're a parent looking to set up a savings account for your children, then Halifax's one-year Children's Saver bond continues to outshine its competitors, paying 10% AER on monthly contributions between £10 - £100.
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