However, they will be brought back to earth with a bump when these deals come to an end unless they take action to circumvent the full impact.
This time last year, the leading fixed rate bonds were paying rates in excess of 7.0% and the Bank of England base rate was 5.0%. Base rate has since been slashed to 0.5% and savers who took advantage of last year's fantastic rates will see their rates of return fall below that unless they arrange to transfer their funds elsewhere.
Bradford & Bingley's High Life 2-in-1 Saver Issue 2 is paying 8.0%, but the rate will plummet to a measly 0.1% on maturity, while savers with Nottingham Building Society's Fixed Rate Bond Issue 53 will earn just 0.25% when the 7.1% offer comes to an end.
It really is essential that savers with money in such accounts are prepared and ready to move their savings once the fixed term ends - it could literally mean the difference of hundreds of pounds in interest over the next 12 months.
What are the best deals currently available?
With base rate at a historic low, there are no savings accounts offering rates at the levels available this time a year ago. That said, the leading fixed rate deals are paying more than 4.0%, which isn't bad given that base rate is just 0.5%.
If you can afford to lock your money away for another year or two, these deals are well worth taking advantage of in order to maximise your returns in this low-rate environment.
ICICI Bank and Rothschild's are both offering two-year fixed rate bonds at 4.35% - on a balance of £10,000 you'd earn £435 interest a year, compared with just £10 in an account paying 0.1%.
Both accounts only permit a single lump sum investment and you cannot access your money during the fixed term. The minimum deposit on ICICI's HiSave account is £1,000, while Rothschild's is higher at £20,000.
Other alternatives include Birmingham Midshires' and Kent Reliance's two-year fixed rate bonds, both of which are paying 4.25% - Birmingham Midshires' deal is available on balances of £1 or more while Kent Reliance has a £100 minimum investment.
There are higher rates available on longer term deals - The AA has a five-year bond at 4.50%. However, with base rate as low as it's going to go it is not advisable to lock your money away for longer than a couple of years in case you find yourself stuck on a rate that becomes uncompetitive.
You may even think two years is too long to tie your money up for. If you'd prefer a shorter term deal, National Counties Building Society has a one-year bond at 3.91%, while ICICI Bank and Abbey are both paying 3.75% on their one-year deals. Abbey and National Counties have high minimum investment requirements at £25,000 and £20,000 respectively. ICICI's minimum is £1,000.
I need to retain access to my money
If you don't want to roll your savings into another fixed rate account because you may need to access your money, you'll have to accept a lower rate.
Intelligent Finance's isaver account will pay 2.85% from Saturday June 13 - this is an easy access deal with no introductory bonus or withdrawal penalties.
Principality Building Society's e-Saver is also paying 2.85% although this includes a 12-month bonus of 1.20%, so you may need to move your money again once the bonus period ends.
Alternatively, ING Direct's Savings Account is paying 2.75%. As with the Principality account, this includes a bonus for the first year, in ING's case it's a large bonus at 2.22% so there is an even greater likelihood that your money will need switching to another account once this period ends.
Other options if you're looking for an easy access account include Derbyshire Building Society's Online Saver at 2.65% and Sainsbury's Internet Saver at 2.60% - the minimum deposit on the Derbyshire account is £5,000 while the Sainsbury's rate is available on balances of £1 or more. However, the Sainsbury's account only allows three penalty free withdrawals a year - make more than that and the rate drops to just 0.75%
And there are a host of providers paying 2.50% including Abbey, Alliance & Leicester, Egg, Birmingham Midshires and Newcastle Building Society. These deals all include 12-month bonuses so as with the ING account you will need to re-evaluate the competitiveness of the rate after the first year.
Remember, keep your money safe
The reported problems at West Bromwich Building Society have reaffirmed the fact that the stability of some providers is still questionable. This shouldn't deter you from saving money, you just need to ensure you have no more than £50,000 deposited with a single institution (£100,000 if the account is in joint names). If you have more than this in cash savings, look to spread your money around between different banks and building societies to ensure it is all totally protected. For more information on this, read our articles 'Who owns who?' and 'How safe is your bank?'.
Disclaimer: Please note that any rates or deals mentioned in this article were available at the time of writing. Products underlined can be applied for directly.
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