Top time for savings says

29 June 2007
Savers should take advantage of rising interest rates, particularly if the Bank of England hikes the base rate a further quarter-point next week, has stressed.

A raft of providers has raised rates for savers and some banks and building societies are even raising rates in pre-emption of another anticipated rise, said's head of savings Kevin Mountford.

Of these deals, he commended Sainsbury's online saver deal and Bradford & Bingley for strong savings packages, as well as pointing older customers towards Coventry Building Society's 6.4 per cent rate on the 60 Plus e-Saver.

Fixed rate savings accounts, whose interest rates do not rise in line with the base rate, meanwhile, are linked to swap rates, and strong swap rates have allowed for excellent rates from Halifax at 6.5 per cent or the Bank of Cyprus at 6.53 per cent, Mr Mountford added.

Nevertheless, more people need to begin savings substantial sums soon, data from the Office of National Statistics (ONS) this week suggested.

In the first quarter of 2007, Britons put aside just 2.1 per cent of their income on average, the lowest proportion since 1960, the ONS revealed.

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