Great new internet saver rates, but note bonus period

Andrew Hagger of Moneynet.co.uk looks at the internet savings accounts launched this week and warns consumers to monitor the bonus element of the rate.

Not only are we starting to see improved savings rates in the Fixed Rate Bond market, but this week has seen the announcement of two attractively priced internet savings instant access accounts too.

Leeds Building Society have launched a new easy access online account paying a best buy table topping 3.05% gross, however 1% of this rate is a bonus and is only part of the deal for the first year.

On 26 June, Egg will be launching an instant access internet account paying 2.80% gross, however on this occasion the 12 month bonus element accounts for 1.55% of the overall rate.

Whilst this bonus represents a big slice of the total rate, it's not in the same ball park as the current easy access savings account from ING Direct where the 2.75% rate includes a first year introductory bonus of 2.22%.

So whilst the rates on offer are an improvement on what's been available recently, savers need to make a note in their diary to check the rate on offer in 12 months time as they'll almost certainly need to switch again if they want to maintain a decent rate of return on their cash.

Unfortunately it's not a case of depositing your money and being able to forget about it as that strategy will eventually see you being poorly rewarded for your custom.

To get the best return on your cash savings, it's become a fact of life that you need to keep your eyes and ears open when it comes to getting the best deals.

Whilst this may involve you investing a little of your time to keep tabs on the rate you receive, a proactive approach and a monthly check on price comparison sites like www.moneynet.co.uk will help you get the best deal you can.

Those with a more lethargic approach to managing their savings are the sort of customers that institutions dream of, ultimately receiving a pittance of a return on their savings whilst boosting the provider's profits.

So whilst they want customers to sign up in their droves, the banks and building societies are also hoping these same people have short memories and will forget to switch away at the same time that the bonus element expires.