One year on from the crunch savers 0.6% better off

One year on from the unofficial birthday of the "credit crunch", 9 August, analysis of the savings market by cahoot has discovered that rates offered on savings accounts have increased by a substantial 0.6 per cent across the market.

Last summer the average instant access accounts offered a return of 2.72 per cent on balances of £500, but over the past twelve months this has crept up to 3.32 per cent. Looking at the best buy rates the average instant access rate has increased by 0.24 per cent with the average best buy one year fixed rate bond up by 0.48 per cent over the same period.

The amount of choice open to those looking to save has also increased substantially from 490 accounts a year ago to 1,503 today.

Matthew Timms, Managing Director, cahoot commented: "Few of us will be celebrating the anniversary of the credit crunch but it's clear that savers have been the winners with rates hitting the 7 per cent mark in recent months. Cahoot offers savers the best of both with a best buy 7.01 per cent one year fixed rate bond and an instant access account paying up to 6.55 per cent AER."

Andrew Hagger, of Moneynet says: "Whilst the last 12 months has been extremely gloomy for those consumers with mortgages and borrowing requirements, it has been a year of opportunity for those with money to save.

"The battle for retail deposits has seen institutions offering some of the highest interest rates seen for over seven years, particularly in the fixed rate savings arena.

"The market is more competitive than it's ever been and it's essential that savers regularly check to ensure that they're getting the best deal on their nest egg as best buy deals are changing on an almost daily basis."