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Savings - What a difference a year makes!

This time last year the base rate was at the same level as it is today (5.25%). Savings rates on the other hand, are far higher than 12 months ago

Despite the latest cut in base rate, the second in the last three months, fierce competition within the savings market and particularly the battle for best buy recognition means that savers have the opportunity to grab some great deals at the moment.

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It seems that some institutions are favouring a strategy of bringing in more funds via retail deposits rather than relying so much on funding their lending through the money markets. Again this is a factor that has driven rates to such highs for UK savers.

No notice accounts without bonus

Savers can get 6.55% from West Bromwich BS, who currently top the No notice accounts Best Buy chart.

Even if you take into account that some of these institutions have not yet announced their rate decisions post-base rate, a drop of 0.25% will still leave them well in excess of those on offer last February.

Fixed rate bonds

If you don't need to have access to your savings for a while, fixed rate savings bonds also offer good value at present, and once you've signed up, you will not be impacted by the further anticipated downward fluctuations in base rate.

West Bromwich BS are offering a rate of 6.75% on their 6-month bond and Icesave are offering a 6.60% rate on their 2-year bond.

With uncertainty surrounding stock market investments at present and many commentators predicting further rate cuts as we progress through 2008, there are likely to be many savers ready to take advantage of these opportunities.

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