Anyone with spare funds lying around should act immediately to secure an attractive fixed rate savings account before they all disappear.
The decision by the Bank of England to slash the base rate by 0.5% yesterday will no doubt have an adverse effect on savings, while the dramatic banking rescue package will add further downward pressure.
Up until now, savers have been one of the few beneficiaries of the market turmoil. Because banks were desperate for funds, they were offering great saving rates to attract new capital.
However, with the government making up to £200 billion available to ease liquidity problems, banks will no longer be that desperate for your money.
Compare fixed term savings accounts
Act now, but spread your savings
This makes is essential you act quickly to lock your money into the best fixed rate savings bonds around.
In these times of such uncertainty amongst the banks, it’s essential you don’t save any more than £50,000 in each account, as this is the maximum amount protected by the financial services compensation scheme.
And of course you need to ensure none of your savings pots are held in accounts owned by the same parent company, as the aforementioned guarantee only applies once per banking group.
Below are three of the best paying fixed rate bonds currently available.
| AER | Term | Minimum deposit |
| ICICI HiSave | 7.20% | One year | £1,000 |
| Anglo Irish Bank | 7.05% | One year | £500 |
| Standard Life Bank | 6.90% | 06/05/2009 | £1,000 |
Compare notice and fixed rate savings accounts
