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What type of saver are you?

What type of saver are you?

Category: Savings

Updated: 29/06/2011
First Published: 29/06/2011

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 It is now over 6 months old so the content may be out of date.

The battle for savers money since the base rate fell to 0.5% in March 2009 has seen a steady rise in the number of savings accounts available.

At the end of May, there were more than 2,350 savings accounts on the market, with the majority offering a rate well in excess of the Bank of England's base rate, meaning there should be a product to suit all circumstances.

While the best rates remain on longer term fixed rate bonds, savers can still get competitive rates for both easy access accounts and ISAs.

With figures out today showing that around six million of us have absolutely no savings, there is no better time to take the plunge and build up a safety net of funds.

Here is a selection of some of the best deals currently available.

Best for easy access

If savers are prepared to manage their account online then Nationwide Building Societies MySave Online Plus is offering the highest rate in the market. The account pays 3.01pc, which includes a 1.51pc bonus for 12 months. Between £1,000 and £3million can be invested into the account. No notice is required to make a withdrawal, but if savers make more than 1 withdrawal per annum the rate on the account drops to just 0.10pc.

Best Cash ISA

This AA Online Access ISA pays a rate of 3.35pc, including a bonus of 1.65pc for the first twelve months. Savers can invest a minimum deposit of £500 and must be new money to the institution. No advance notice is needed to access funds, although all withdrawals must be made via a nominated account. Transfers in are not accepted. As the name suggests, the ISA is operated online only.

Best short term fixed

Savers looking to tie their money up for a year are being offered a rate of 3.50pc from Yorkshire Building Society. For those after a regular income a monthly income option is available. Between £1,000 and £2 million can be invested in the bond, with further additions permitted whilst the bond remains open. Once open, earlier access is not permitted, so savers need to ensure they won't need the money invested. The bond is also available through the Barnsley Building Society brand.

Best for longer term fixed

Krbs is offering savers who commit funds for five years a rate of 5.00pc. Savers can invest between £500 and £1 million into the bonds, which has a monthly interest option for savers after a regular income. Before committing funds savers must ensure they won't need the money as access is not permitted during the five year term.

If the selection doesn't quite offer what you're looking for, then the Moneyfacts Best Buy tables is the place to go.

They showcase the best savings products on the market and have been rated by Moneyfacts.co.uk's impartial and unbiased research team, so you can be sure of the quality of the account you choose.

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.

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