L&C Savings - – the savings division of mortgage broker London & Country - has launched an easy access, market leading savings account.
At 6.10 per cent for 12 months, the L&C Savings accounts'
Access Extra is offering a rate of more than half a percentage point above the average savings account rate of 5.5 per cent.
The account has a minimum deposit of just £1,000, and once opened, is operated entirely by post.
It is an easy access account which means there is no notice or penalty for withdrawals; statistics show that more and more people are dipping into their savings during the credit crunch just to make ends meet, so easy access could prove invaluable.
The Bank of England base rate now stands at 5 per cent having been cut three times in the last six months; under normal circumstances savings rates would be expected to follow suit. However, because of the financial crisis, banks are being forced to raise savings rates, and savers can benefit from highly competitive deals like the 6.10 per cent offered from L&C savings accounts.
Speaking of the strong position savers are currently in as a result of interest rates like L&C savings accounts, David Black, principal consultant in banking at Defaqto, said: "With many people thinking that the base rate is likely to fall further this year some of the fixed rate products available now look outstanding value.
"It is clear that some financial institutions are making their decisions about savings rates in the light of their own particular circumstances and are not being influenced too much by what is happening to the Bank of England base rate."
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