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Long Term Savings

Long Term Savings

Category: Savings

Updated: 31/10/2008
First Published: 10/08/2006

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 It is now over 6 months old so the content may be out of date.

Savings news for customers over the course of 2006 has been somewhat depressing; hardly a week goes by without revelations that interest rates have been cut.

However there is at last some brighter news for savers, if you are in a position to put your money away for a minimum of 12 months.

Rachel Thrussell, Head of Savings at Moneyfacts.co.uk comments as follows:

"The 'swap rates' for longer-term deals in the money markets have risen sharply over the last few weeks, which has meant that interest rates on fixed rate mortgages of two years or more have become more expensive. On the other hand this increase is good news for savers, as it has allowed a number of institutions to pass this on to their customers by way of improved fixed term interest rates. The increases are quite substantial; we have seen many increases over 0.20% and in some cases as high as 0.35% or 0.50%, certainly a big enough increase to make it worthwhile reviewing your savings portfolio.

Some examples of improved interest rate deals are as follows:

  • Birmingham Midshires: 1 Year – up from 4.90% to 5.01%
  • Bradford & Bingley: 1 Year – up from 4.60% to 4.70%
  • Egg: 1 Year – up from 4.55% to 4.80%
  • Heritable Bank: 5 Year – up from 4.75% to 5.25%
  • Norwich & Peterborough BS – 3 & 5 Year up from 4.65% to 5.00%
  • Portman BS: 2 Year - up from 4.75% to 5.00%
  • Tipton & Coseley BS: 1, 2 and 3 Year – up from 4.60% to 4.95%
  • Yorkshire BS: 2 Year – up from 4.80% to 5.00%
"So, if you have some savings that you are prepared to 'put away' for a year or more, now may well be the time to take advantage of these increased rates."

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 Any products featured may be withdrawn by their provider or changed at any time.