Savers 'reap rate rise rewards'

Savings accounts offering up to and beyond eight per cent interest show that Britons who can put money away continue to benefit from the rate rises, said an expert.

According to moneysupermarket.com, which has stated its intention to float on the London Stock Exchange, banks are anticipating further base rate rises and offering customers higher rates on their savings accounts.

Kevin Mountford, head of savings at the comparison website, said: "Some providers have increased rates in anticipation of an imminent rate rise. Indeed Bradford & Bingley and Sainsbury’s Bank have both recently increased their offerings."

Coventry Building Society have followed the trend, with an increase in interest for savings accounts for over-60s, offering them 6.4 per cent.

Nationwide has also announced a new six per cent account, however, as with many of the offers, the rate drops off after the first year.

While Nationwide says its base rate tracker premium offshore savings account will beat the base rate in the first year, thereafter it will pay 0.25 per cent below the rate set by the Bank of England.