Savings account rates creep up

Interest rates on savings accounts have crept up in the last 12 months, despite stagnant conditions.

According to research from MoneySupermarket.com the average top five easy access savings account rate has increased by 0.23 per cent in 12 months, to 2.97 per cent. Meanwhile, one and two year fixed rate saving accounts have seen an increase of 0.46 per cent.

The news comes as the Bank of England base rate, which influences savings rates has remained at a record low of 0.5 per cent since March 2009.

Commenting, Kevin Mountford, head of banking at MoneySupermarket.com said: "Savers have suffered from a low base rate environment for almost three years so it's encouraging to see banks and building societies increasing competition to attract savers, offering attractive headline rates compared with a year ago. However, with the majority of savers sitting on low rate accounts I would urge consumers to take advantage of this renewed competition and shop around to ensure they have the best savings deal for their needs. Even if you cannot afford to lock away your savings, the top paying Easy Access accounts are still paying over six times that of Bank of England base rate."