Despite the Bank of England maintaining the base rate at 0.5 percent for a record period, consumers are urged to compare savings products as rates start to look competitive again.
Saving accounts have taken a hit recently as the low base rate meant savers found it hard, if not impossible, to find an account paying a rate of interest which beat inflation.
While the cost of living remains high, inflation remained flat at 4.5 percent in May, unchanged from April. However, with much of the nation experiencing pay freezes, or pay rises that are not in line with inflation, it is more important than ever to have some money set aside for a rainy day.
The one year fixed rate bond from the Post Office is at the top of many best buy tables. It requires the saver to deposit £500 to £2 million in this period to receive a guaranteed savings rate of 3.35 percent AER fixed.
After opening the account, the saver cannot deposit more money or withdraw money.
If you do not have £500 to put into a savings account, then this offer from Santander offers a one year fixed rate bond with a rate of 3.15 percent gross AER, which only requires a minimum deposit of £1. However, it is recommended you deposit as much as you can as withdrawals and further deposits are not allowed ñ and the bond matures on 1st July 2012.
For a more flexible option, Nationwide is offering an instant access bond ñ Mysave online plus ñ with a variable rate of 3.05 percent AER Gross p.a with a 1.51 percent gross p.a bonus fixed for 12 months.
However, there is a minimum investment of £1,000 required to open this bond.
Post Office ñ 3 year Bond
If you are prepared to tuck your money away for an extended period of time, then the Post Office is offering a competitive rate of 4.05 percent gross/AER fixed for a three year bond.
The saver is required to deposit from £500 to £2 million for a year ñ with no extra deposits or withdrawals after opening.
Alternatively, check out some of the most competitive cash ISAs on the market to receive tax-free interest on your savings.
If you are able to tuck away £1,000 or more, then this offer from NatWest is unbeatable. Their 3 year fixed rate ISA issue 12 means savers can earn tax-free interest at a fixed rate of 3.70 percent.
Or RBS offers the same rate of interest ñ fixed at 3.70 percent on a range of one, two or three year terms. Savers are required to invest a minimum of £1,000.