Moneynet.co.uk: Top three savings picks 5 May 2009

Andrew Hagger of Moneynet.co.uk reviews three of the best savings deals on the market today. With new savings account launches still coming in thick and fast, there are three accounts that offer excellent value in the current climate depending on the type of product you're after.

Regular savings

The Monthly Saver from Barclays has been the top regular saver account for months and is still offering a cracking 6% AER fixed for 1 year. Although you're limited to saving a maximum £250 per month, the combination of a top interest rate and an extremely flexible product makes this account stand out from the crowd. You don't have to switch your current account to get it, you can amend the amount of your monthly standing order or miss a month if you need to and you can make withdrawals. Bear in mind that the interest rate dips to 3.03% AER in any month you make a withdrawal, however it's still better than many regular saver accounts that strangle you with small print and won't allow withdrawals at all.

Many regular saver accounts often get bad press, and rightly so, for offering a headline rate and then once they get your interest, hitting you with a stream of inflexible terms and conditions.

Fixed rate savings

The focus for many savings providers has been fixed rate accounts with a term of two years plus, with rates as high as 4.50% AER for those willing to tie their funds up for five years. In the current uncertain financial climate, it may be a better approach to lock in for a shorter term as nobody is quite sure when and how quickly base rate and savings rates will recover. So if you've got £5,000 or more to invest then the 1 year E bond 22 from West Bromwich Building Society at 4.30% AER currently sits top of the pile. There are no withdrawals allowed with the account and you'll need to invest £50,000 or more in this bond if you're seeking a monthly income. It's a limited offer that probably won't be around for too long.

Individual Savings Account (ISA)

Even though we're already a month into the new tax year, there will still be many people who haven't made use of their ISA allowance. The variable rate Golden ISA from Barclays at 3.61% may include a 1% bonus for 12 months, but the instant access option should make it an account worth checking out even if you're just putting some money aside for that holiday or maybe Christmas. As a basic rate taxpayer, you'd need to find a non ISA account paying 4.51% gross to obtain a net return of 3.61% and in the current environment that's simply not going to happen. The downside of this account is that it doesn't allow you to transfer previous ISA balances, but apart from that it's well worth a look.