However, on a slightly more positive note, analysis carried out by MoneySupermarket found that savings rates are actually higher than they were this time last year.
The trend seems to be continuing as West Brom Building Society has launched a new easy access account and with inflation starting to fall back, the outlook for savers perhaps looks a bit brighter than you'd expect given the low interest-rate environment.
What's the deal?
The West Brom Direct Bonus Account 3 is a variable rate account paying 3.13%, available only through MoneySupermarket. However, to qualify for this rate you need to deposit at least £10,000 when the account is opened.
It's also important to note that the interest rate is boosted by a 1.38% bonus which runs until 28 February 2013. It will then drop to 1.75%. In comparison with many accounts that's a relatively small bonus - some drop to 0.50% after the first year. However it is still worth checking to see how the rate compares with what else is available on the market once the bonus period ends as it could be worth moving your savings again at that point.
This is an online account which is available to new and existing customers. Interest can be paid monthly or annually making it suitable for savers wanting to use their savings interest to supplement their income.
Any drawbacks?
While this is an easy access account - meaning you can pay money in and withdraw it at any time - you can only make four withdrawals a year without incurring a penalty. If you need to dip into your savings more than four times, you will lose 90 days' interest.
The minimum deposit is quite high at £10,000, and the fact it is operated online will mean it doesn't suit everyone.
Verdict
This account won't suit first-time savers because you need at least £10,000 to open it but it's a good option for seasoned savers looking for a high return while keeping their money accessible.
For many people, four penalty free withdrawals a year won't be too restrictive but if you dip into your savings more regularly than that it is worth considering an alternative account such as Santander's eSaver Issue 4. This pays a slightly lower rate of 3.10% but unlimited penalty-free withdrawals are permitted. You can also open this account with as little as £1. However, there is a 12-month bonus of 2.60% so the rate will plummet after the first year and you should look to move your money at that point.
Alternatively, if you are looking for a savings account without a bonus, the Virgin Easy Access E-Saver account is worth considering. It pays 2.85% on balances above £1. There is no introductory bonus and unlimited penalty free withdrawals are permitted. However, the rate is variable so even though there's no bonus, it's worth keeping an eye on it as its competitiveness could erode over time.
Click here to apply for the West Brom Direct Bonus Account 3.
Please note: Any rates or deals mentioned in this article were available at the time of writing.
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