Savers receive welcome boost as rates bounce back

Savers may finally be able to see the light at the end of the tunnel after a string of providers have this week increased rates or launched new accounts paying competitive rates.

Michelle Slade, analyst at Moneyfacts.co.uk commented: "With base rate being kept on hold last month, savings providers have had a chance to review their positioning in the market. We are now seeing those that want to increase their position offering improved terms, which is good news for savers.

"Fixed rate bonds continue to offer the best rates for savers with 35 accounts now paying rates of 4.00% and above, compared to just two at the beginning of last month. However, to get these great rates you will need to commit your money for at least two years.

"West Bromwich BS is the only exception to this, offering a fantastic 4.30% on its 13 month bond.

"Variable rate accounts have also received a boost with Stroud and Swindon BS increasing rates by up to 0.60% on its Postal Account, taking it to the top of the Moneyfacts.co.uk instant access best buys.

"Stroud and Swindon BS has also increased rates on the higher tiers of its 30 Day Notice account by up to 1.35%, while Progressive BS has launched a new issue of its Postal 7 Day notice with rates 0.75% higher than on the previous issue.

"Savers have received nothing but bad news of late and it looks like thing have finally turned a corner.

"Hopefully in the weeks ahead other providers will follow and savers will be able to get a better rate of return on their money.