However, things are very different when you are in the middle of a global credit crunch. Borrowers are seeing mortgage and loan rates rise as they bear the brunt of the wholesale funding shortage. Savers, by contrast, are being wooed by banks and building societies desperate to attract more of our money into retail deposit accounts to reduce their reliance on wholesale markets.
This means that even though there have been three quarter-point interest rate reductions since December and Bank rate has fallen from 5.75% to 5.0%, savings rates have remained high - some have even increased.
Just days before this month's rate cut, Abbey increased the rate on its E-Saver Direct account by 0.25 percentage points taking it to 6.5%. It has followed this with the launch of another account, the Instant Access Saver, which is also paying 6.5%.
So what's the deal?
While the rate on Abbey's new Instant Access Saver is the same as that on the E-Saver Direct account, there are some notable differences between the two deals.
The E-Saver Direct is an internet and telephone account which pays 6.5% on balances of £1 or more. You can access your money at any time, but if you make a withdrawal the interest rate drops. You earn an annual rate of just 2.75% in any month you make a withdrawal. Consequently, if you regularly dip into your savings, the effective rate of interest will be significantly lower than 6.5%. The headline rate also includes a 12-month bonus of 0.75 percentage point, so the standard rate will be 5.75% after a year.
Abbey's new Instant Access Saver does not levy the same withdrawal penalties - you can make unlimited withdrawals without losing any interest. However, the minimum balance is higher at £1,000 and the rate includes a one percentage point bonus which lasts for 12 months. The rate will therefore drop to 5.5% after the first year. Transactions can be done over the internet, phone or in a branch, although you can only apply online.
So to summarise, if you want quick and easy access to your money and your balance is consistently over £1,000 then the Instant Access Saver is for you. However, if you're happy to bank online only and to leave your money alone then the E-saver Direct is still preferable.
How do Abbey's deals compare with the rest of the market?
Abbey is not the only provider offering a rate of 6.5%. Alliance & Leicester (A&L), Birmingham Midshires and Kaupthing Edge also have easy access accounts paying the same rate.
A&L's eSaver includes a 0.62 percentage point bonus until May 31 2009 and there are withdrawal restrictions: you earn no interest at all in any month a withdrawal is made - with the exception of July, when you can take money out without penalty.
The Birmingham Midshires e-Saver and Kaupthing Edge's Instant Access accounts are probably better options. Neither include an introductory bonus and they both allow unlimited access to your money. However, each has a slight drawback: The Birmingham Midshires deal is an internet-only account, while you can operate the Kaupthing Edge account over the phone as well as online. But, Kaupthing Edge requires a minimum deposit of £1,000 whereas the rate on the Birmingham Midshires account is available on balances above £1.
If you are looking for a variable rate savings account, bear in mind that most of the big name providers have yet to announce rate changes following this month's rate cut. The rates on the two Abbey accounts are unlikely to change, given that one is a brand new account and the rate on the other has already changed this month and Kaupthing Edge has said that its rate will stay at 6.5%. However, A&L and Birmingham Midshires may decide to pass on the quarter-point cut to their accounts.
For more information, watch our video blog, Savers beat the rate cut. If you are unsure what rate you are currently earning on your savings, have a look on our comparison tool and see how the rate compares with the rest of the market.
What about fixed rate deals?
If you can afford to lock your money away, now could be a great time to fix your savings rate. Even though the best easy access accounts are paying 1.5 percentage points above Bank rate, these rates will have to start falling eventually, particularly as further rate cuts are expected this year.
If you are prepared to lock your savings away, you can earn an even higher rate of interest.
ICICI stole headlines this week with the launch of a one-year fixed rate bond paying 7%. This is the market-leading fixed rate deal and eclipses Iceland's Kaupthing Edge and Icesave, which both offered 6.86%.
The catch with this account however, is that you must open a Hisave easy access savings account alongside the deal. The Hisave account is competitive at 6.16% and has a neat guarantee to be at least 0.3% above Bank rate until December 31, 2011.
If you want a more straightforward account, Halifax has bumped up the rate on its Web Saver to 6.85%. This is fixed for five years, which you may see as a plus point. However, the downside is that you cannot access your money during the fixed term so you should only invest funds you know you won't need during that time.
For shorter term security, the Birmingham Midshires Direct Internet Fixed Rate Bond offers a rate of 6.81% that is fixed for one year. Alternatively, it has a six-month Direct Internet bond paying 6.87%.
Saga is another provider to have launched a new deal. It is offering a one-year bond to the over 50s that is fixed at 6.76%.
Whether you're looking for a fixed rate or easy access account you should compare deals with a comparison website to get an overview of what's available to you. With such fantastic rates available there is no excuse to keep your money languishing in an uncompetitive account.
Have your say: Are you worried about the security of your savings or are you just making the most of the great rates available at the moment? Visit our community forum and let us know.
Disclaimer: Please note that any rates or deals mentioned in this article were available at the time of writing.
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