A year on from the Northern Rock run, savers reap the rewards

The greater need for institutions to claw in deposits since the run on Northern Rock 12 months ago has meant savers have been constantly rewarded, with rates climbing even as the base rate falls.

Analysis by moneysupermarket.com shows that last September the best easy access account - Northern Rock's tracker online - paid 6.31 per cent while the base rate hovered at 5.75 per cent. Now Alliance & Leicester leads the way with an account paying 6.56 per cent - or 1.56 per cent higher than the base rate.

The fixed rate bond market tells a similar story - a year ago, the best rate savers could access was 6.9 per cent, whereas today they can take advantage of 7.2 per cent.

Kevin Mountford, head of savings at moneysupermarket.com, said: "It has been a turbulent year and there have been many people nursing losses from the stock market performance, but cash savers really have had the last laugh. While the base rate has been falling, the average rate on savings accounts has been steadily climbing as providers seek to shore up their books. As long as this demand for retail deposits remains high, savings rates will stay high - it's that simple.

"What has been most interesting is how the best buy tables have changed - 12 months ago, UK banks tended to dominate the top five whereas now we're seeing foreign banks really flexing their muscles. In particular, we've seen strong offerings from the likes of Kaupthing and ICICI, which has led to a rate war. This increased competition means some UK institutions will need to start making bolder moves for our deposits."