To fix or not to fix….. - Savings - News - Moneyfacts


To fix or not to fix…..

To fix or not to fix…..

Category: Savings

Updated: 31/08/2010
First Published: 31/08/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

In uncertain economic times, when headlines are dominated by low interest rates, high inflation and pension shortfalls, the importance of saving money cannot be understated.

Figures from show that more and more people are leaning towards variable rate savings accounts, possibly in the hope that interest rates will soon rise, and boost the rate of interest paid on their money.

There are a number of savings accounts currently available that pay the base rate of interest plus a sizeable bonus.

While they may not offer a rate that quite matches the top offers in the short term fixed rate savings market, any movement in the base rate would see the interest paid swell accordingly.

The savings accounts include the e-Saver Issue 2 from Santander, which offers a 2.25% bonus for 12 months plus the base rate, meaning savers get a rate of 2.75%.

The Easy Saver from Sainsbury's also catches the eye, offering a rate of 2.60% for 12 months, and the base rate thereafter, although investors may wish to reassess their options if it has not risen from its 0.5% level.

Barnsley BS is also joining the variable rate savings party, with its Online Saver Issue 2 paying 2.50%.

Those of the belief that the Bank of England will keep rates frozen for significantly longer may prefer a savings account that offers a fixed rate of interest.

In the two year market, savers can get a rate of 3.70% on their money with Coventry BS's Fixed Rate Bond, while those not keen on tying their funds up for so long can get 3.00% with the ICICI Bank HiSave account for a one year account.

Before you decide on which fixed rate savings account or variable rate savings account you might want to take out, it could be worth using's Monthly Savings Plan Calculator to work out how much you can put away each month.

Find the best savings rates for you - Compare savings accounts

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Savings being used as a festive financial buffer

Good news from RCI Bank UK – its latest research shows that many of us are saving more than we were a year ago, but the question is, will you be dipping into that buffer to cover the cost of Christmas?

6 of the best easy access savings accounts

Easy-access savings accounts are as simple as they sound – they allow you to access your money whenever you need it, without having to give advance notice, and they also allow you to pay into them at any time. Here are six of the best.

Start saving for Christmas… 2017!

Christmas is just around the corner and our annual festive splurging is starting to step up, but are you prepared? It may be too late to start saving for this year’s festive spend, but it’s never too early to start for next year’s!