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Savings account rates continue to rise above the base rate

14 August 2009 / by Andy Davies

Savings account rates are continuing to climb above the base rate with moneysupermarket.com saying there has never been a better time to save.

Despite the base rate remaining unchanged at 0.50 per cent since March this year, savings account rates have been increasing.

The average interest rate of the top five easy access accounts now stands at 3.11 per cent - 2.61 per cent above the base rate.

Reacting to these findings, Kevin Mountford, head of banking at moneysupermarket.com, said: "We've got a savings war on our hands at the moment as banks and building societies battle it out for our cash.

"Savers should be taking advantage of these amazing rates - being able to earn more than 3.0 per cent on your money when Base Rate is just 0.5 per cent is an opportunity not to be missed."

However, Mr Mountford said people need to be aware of 'catches' before committing to a savings agreement, as some accounts can have introductory bonuses and withdrawals restrictions, but he added that savers should not be put off by these conditions.

He said: "Just make sure you adhere to the terms and conditions and in the case of bonuses, move your money once the introductory offer ends."

Egg and Citi are both in moneysupermarket.com's top five when it comes to easy access savings accounts at the moment with the  Egg Savings Account offering a rate of 3.25 per cent and the Citibank savings account offering a rate of 3.10 per cent - both accounts require a £1 deposit.

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