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If the cliché were true
that we keep money aside ‘for a rainy day’ then most of the UK’s population must
have been reaching for that secret stash in the past few weeks, given the
horrendous weather.
However, if you are fortunate enough to have some savings left over I would
advise you to keep them stored away for a good while yet – because the Bank of
England’s latest base rate rise (to 5.75%) has shaken the savings market, and
there has rarely been a better time to save.
It
takes approximately 20 days for most providers to pass on the benefit of a rate
rise, and now, almost three weeks on from the most recent hike, there are nearly
20 providers offering 6% AER or above. For a full perspective on the savings
market, use our
savings account
comparison tool, which compares more than 4,000 savings accounts.
Once
again, it is the newcomers who are stealing a march on the high street banks.
From
Monday 23 July, the
ICICI HiSave account increases its rate from 6.05% AER to 6.3%
AER, making it the market-leader. The new rate will be automatically paid to
both existing customers and newly-opened accounts.
This
increase places the account a notable 0.55% above the base rate – despite its
guarantee to be 0.25% ahead of the base rate until the end of the year.
Its
nearest rival is the ICESAVE Easy Access Account that offers 6.2% AER. ICESAVE
has been among the market leaders ever since its launch last year and its tussle
with ICICI at the top of the best buy tables has been a pleasure for all savers
to watch – long may it continue!
Alternatively, the
Alliance & Leicester Direct Saver is your leading option at 6.1%
AER. This account does come with a catch, however, as no interest is paid on any
month a withdrawal is made or an account is closed.
Constantly moving from one provider to another and keeping an eye on the market
won’t suit everyone, which is why I’d also like to highlight the Bradford &
Bingley eSavings 4 account at 6.01% AER. The key to this offer is that the rate
is guaranteed to be above the base rate until 30th June 2009.
ICESAVE also has a long-term guarantee to be at least 0.25% above the base rate
until 1st October 2009.
Wherever you choose to put your money, don’t allow it to squander in a low
interest current account or a savings account that simply isn’t keeping up with
the pace.
Make a stand against
providers who are not keeping up with consumer demand by switching now, and make
the most of your money too.
LINKS:
ICICI HiSAVE account – 6.30%AER
Alliance & Leicester Direct Saver – 6.10% AER
Compare more
than 4,000 UK savings accounts
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