New savings accounts paying 5% launched this week

The new CPI figure of 3.7% for April, released this morning means that savers are still having a tough time and need to find an account paying 4.625% (basic tax payer) to maintain the spending power of their cash.

There has however been some slightly brighter news this week for savers, with two new accounts offering a rate of 5% AER.

Northern Rock today launches a regular saver account paying 5% fixed until June 2011. Whilst you have to open and manage the account in branch, the rate is a best buy and coupled with the fact that you can withdraw without notice or charge, this account is likely to prove extremely popular. The maximum you can pay in is £250 per month, despite this it's refreshing to find a great rate with such flexibility, but don't expect it to be around for long.

Coventry Building Society has just launched two new best buy fixed rate bonds. Savers are offered a choice of a three year term at a rate of 4.20% AER fixed or a five year option at table topping 5.00% AER, both accounts can be opened in branch, online or by phone and unlike many bonds, yet a very important factor for some savers, they come with the option of monthly interest payments.

Whilst tying your money up for four or five years may not turn out to be the best strategy if interest rates start to pick up soon, some savers will worry less about that and focus on maximising their monthly income.

Savers have been having a rough ride thanks to a combination of ultra low rates and rising inflation and whilst there is the odd gold nugget of a savings account to be found, on the whole the outlook remains pretty desperate.