Wednesday, 14 January 2009

Look: there are good savings rates to be found

The Bank of England reduced the base rate to 1.5% last week, which is going to make life difficult for savers. Many rates on building society accounts have already fallen below 1%, and some are down to zero, relying solely on bonuses to give any return at all.

However, there are some good rates to be found, especially if you can save regularly.

First Direct has an offer of 7% (fixed) for those who invest between £25 and £300 a month. It's a one-year ISA, so it's tax-free too.

Abbey has a Super Fixed Rate Monthly Saver, also at 7%. The slight catch is that savers must open a regular investment, pension or protection plan at the same time. Monthly investment can be between £20 and £250. Without an investment product the savings rate is still a fair 5%.

More soon.

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