MONEY COMMENT
Better Value Savings Rates

By Stuart Watson (TMFTiger)
December 23, 2003

Even though the base rate is the same as it was six months ago, the best savings accounts currently offer much better value than they did this summer.

Moneyfacts have issued a release showing how the average 'best buy' account in December 2003 compares with June 2003.

As you can see, savings rates are up across the board. The table also throws up some interesting facts.

• Notice accounts offer little more than no-notice accounts, so it's questionable whether it's worth taking out an account where you can't access your money for several months.
• Internet-only accounts tend to pay a little less than the best no-notice accounts (which tend to be postal accounts).
• Fixed-rate offers have become much more attractive. This mirrors the increase in the price of fixed-rate mortgages in recent months, and reflects the fact that rates are expected to rise gently over the next few years.
• Current accounts are becoming much more competitive, on average offering only 1% less than ordinary savings accounts.

The increase in rates for best buy accounts also means the gap between them and the average account (namely those unmentionable current accounts that offer 0.1% and those neglected savings accounts that pay just 0.25%) has widened further. So if you haven't checked how your accounts compare to the best buys, now is the time! 

Find out more in our savings centre.