Shop around for savings accounts after rate rise

15 May 2007
The impact of the quarter-point rate rise is beginning to feed through into savings accounts, making shopping around a promising prospect for customers keen to profit from the rise.

M&S Money increased the rate on its variable cash Isa in line with the base rate to 5.5 per cent with a guarantee to pay the base rate or more in interest until December 31st.

Supermarket bank Sainsbury's, meanwhile, announced the rate on its Internet Saver account would increase by a quarter point from May 17th to pay 5.75 per cent annual interest.

Also online, Capital One's savings account, the Base Beater, raised its rate by 0.25 per cent to pay 5.55 per cent interest, just above the base rate.

The Post Office, meanwhile, announced that its Instant Saver rate will rise to 5.75 per cent from June 4th and vowed to pass on base rate rises fully until January 2010.

Providers who have not yet announced increased interest rates may only be holding off temporarily.

But "if in a fortnight or so your account hasn't seen any improvement then you might want to consider moving your money elsewhere", AWD Chase de Vere's savings manager Susan Hannums told the Telegraph.

Find out more about savings accounts

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