Stroud and Swindon’s savings rates

Commenting on the launch of Stroud and Swindon’s new one year 7.05 per cent bond and other increases in savings rates, Kevin Mountford, head of savings at moneysupermarket.com, said: “What a result for savers! Providers look set to climb over each other with more competitive rates as they battle to raise customer deposits.

“Swap rates suggest savings rates should be falling, but as borrowing in the money markets gets tougher, providers are looking elsewhere to raise capital. If this upward movement on rates continues – despite that Bank of England base rate staying steady – then savers will be in a strong position.

“My message is to act now and make the most of these rates as they could be reaching a temporary high. It will be interesting to see if some of the bigger players follow in an attempt to maintain ‘best-buy’ spots and market-share.”