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Five minute finance: What a save!

Five minute finance: What a save!

Category: Savings

Updated: 06/07/2010
First Published: 05/07/2010

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 It is now over 6 months old so the content may be out of date.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 such austere times, it comes as little surprise that savers feel they have been somewhat shunted into the shade.

This feeling will have been magnified by research that shows average savings rates have consistently fallen over the last year, while mortgage rates are at their most affordable level in seven years.

For investors prepared to put in the ground work, however, there are still some enticing savings rates on the market.

Saving made easy

Sainsbury's Finance has this week increased the rate on its Easy Saver account. The account pays 2.70%, including a 2.20% bonus for 12 months and comes with a monthly interest option for savers after a regular income. Up to £100,000 can be invested into the online and telephone operated account. No notice is required to make a withdrawal, but if more than five withdrawals are made per annum the rate drops to 0.50%.

Fun in the sun

Savers looking to put aside a regular amount each month towards the cost of their holiday may be interested in the new deal from Ipswich Building Society. Its Holiday Save account pays 3.50%, providing 11 monthly payments of between £10 and £500 are made. The society has teamed up with Fred Olsen Travel to offer savers up to a 10% discount on the price of their holiday. Furthermore, savers investing in the branch and postal based account will be entered into a prize draw to win an Italian cruise.

Nationwide launches new bond

Nationwide Building Society has launched it new 4 Year Fixed Rate Bond paying 4.15%. Savers can invest up to £2 million into the bond, with a monthly interest option available to those requiring a regular income. Once opened, further additions can not be made into the branch based account. Access is available on closure only and will be subject to a loss of 320 days' interest.

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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 Any products featured may be withdrawn by their provider or changed at any time.