High Paying Savings Accounts to beat inflation
The latest UK retail price index in June 2009 shows an inflation rate of -1.6% so currently the outlook for savers is looking up as over the last few weeks the highest savings rates available on savings accounts has shot up.
With UK interest rates held at 0.5% by the Bank of England at the last monetary meeting it shows how keen the banks and building societies are for you savings accounts as rates as high as 5% are currently available on savings accounts and this desperation is increased as UK Building Societies had a net £2,239 million of withdrawals by savers in June 2009.
The first thing to look at is how long you want to lock up your savings for? If you want instant access then the Alliance and Leicester online saver issue 5 is offering 3.15% with no penalties for taking money out and the rate includes a variable BONUS of at least 1.65% payable until 2 August 2010 and a minimum online investment of £1,000. Tesco are also offering an internet savings account offering instant access and paying an interest rate of 2.25%.
For those able to lock up their savings for a longer period of time Nationwide Building Society is offering holders of their flex account a range of fixed term bonds paying between 2.32% and 5.00% depending on the term and amount invested and these savings accounts from Nationwide Building Society offer a monthly or annual interest option. The minimum sum to open one of these savings accounts is £1.
If you don't have a flex account ICICI are offering a great range of fixed term bonds with the 1 year paying 3.45% the 2 year an excellent 4.35% and the 3 year fixed rate bond is paying 4.60%. ICICI is covered under the UK financial services compensation scheme and the minimum investment is £1,000. The interest on ICICI accounts is paid annually.
On all the savings accounts above you are covered under the fscs to the maximum of £50,000 so for those looking to save/invest more than this amount you might want to consider splitting your savings between different savings accounts providers.
The rates quoted are correct at 12/08/2009 http://www.carpetbagging.co.uk
