One in four variable-rate bank accounts now pay 0.1pc interest or less, making it vital for savers to seek out the best deals.

 

The average easy access savings account pays 0.76pc.  For the first time since Moneyfacts started recording savings rates 21 years ago, the average savings rate is above Bank Rate, suggesting it is possible the first time this has happened.  Retail Price Index inflation remains negative, meaning the real return - in excess of inflation - savers are achieving is 1.98pc for standard-rate taxpayers and 1.84pc for higher-rate taxpayers.  They can now buy more with less.  Savers were hit by falling Bank Rates earlier this year, but as the demand for money remains high, it is likely savings rates will go up.

 

Article taken from The Telegraph, Saturday 22 August 2009