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Product Focus: Savings Accounts

Product Focus: Savings Accounts

Category: Savings

Updated: 21/01/2010
First Published: 28/05/2009

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 It is now over 6 months old so the content may be out of date.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 official bank rate is at its lowest in history and it is possible it will stay at this level for the foreseeable future. Meanwhile, the wholesale funding markets are not functioning as well as they should do, resulting in providers continuing to rely on their savings accounts for raising capital. As a consequence, a hint of competition is returning to the savings market, with more providers offering rates over the 4.00 per cent threshold.

Birmingham Midshires – 2 Year Fixed Rate Bond

This 2 year fixed rate bond from Birmingham Midshires pays 4.25 per cent on an annual interest option and 4.17 per cent if you prefer the monthly interest option. You can invest between £1 and £10m and withdrawals are allowed, subject to 90 days loss of interest on the amount withdrawn.

West Bromwich Building Society – E Bond 20

Building Societies are still well represented in the best buys and West Bromwich Building Society is no exception with its E bond 20 fixed rate bond at 4.15 per cent fixed to 31 May 2011. A £5K minimum investment applies and interest is payable on 31 May on an annual basis.

Barclays Bank – Monthly Savings

If you are able to include a regular savings account within your portfolio, Barclays Bank's Monthly Savings still leads the best buy charts, paying 5.84 per cent a year. Normal regular savings criteria apply with a minimum of £20 per month deposit needed up to a maximum of £250 per month. Money saved should be money committed to a savings plan, as no notice withdrawals are subject to 2.85 per cent loss of interest.

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 Any products featured may be withdrawn by their provider or changed at any time.