Savers can earn more, 'more to come'

While borrowers are cringing at the prospect of further interest rate rises, savers who also want access to their money have much to be pleased about, claims a consumer website.

According to Rachel Thrussell, head of savings at Moneyfacts, said that fixed rate savings rates have continued to climb and are likely to keep on rising.

Eight providers including Birmingham Midshires, Halifax, and Nottingham Building Society have raised savings interest rates by up to 0.55 per cent.

Ms Thrussell said that the rises had brought instant access fixed-rate savings rates, with the highest of 6.2 per cent offered by Nottingham Building Society, into competition with more long term forms of investment.

She said: "While rates in excess of six percent are currently very competitive, instant access rates are not far short of this mark, making the reward for tying up your money relatively low."

"So while these rates will offer a great return and piece of mind, perhaps the market has not yet reached its peak and better rates may still be yet to come," she added.