If your New Year’s Resolution was to increase your savings in 2011, then you may be about to
benefit from some improved savings rates. Many big savings providers have re-launched their
products since the turn of the year, with several now offering enhanced interest rates to savers.
Interest rates on savings bonds up
Santander has re-launched its one and two-year fixed-rate bonds in 2011 and has raised the interest
rates on these accounts by 0.2 per cent. The one year bonds now pays 2.75 per cent gross on
deposits between £1 and £24,999 and 3 per cent on deposits of £25,000 and above.
If you are prepared to commit your savings for two years, Santander offers 3.3 per cent on deposits
up to £24,999 and 3.55 per cent between £25,000 and £2 million. You have no access to your funds
within the bond period although you can apply online, by telephone or in a Santander branch.
2011 has also seen the Coventry Building Society launch a three year fixed rate bond which pays 4.15
per cent gross. As well as this market leading three year bond, the Society also offers the best deal
on a five-year fixed-rate bond. This account pays 4.75 per cent gross.
Easy access interest rates also rise
As well as s increases to the interest rates on several long term savings bonds, some companies have
also increased their savings rates on easy access accounts.
The rates on West Bromwich Building Society’s Branch Easy Saver and No Notice Saver Direct
accounts have been increased by 0.1 per cent, meaning that both now pay 2.4 per cent gross on
deposits between £1,000 and £99,999. As its name suggests, the Branch Easy Saver can only be
operated in branches, but the No Notice Saver Direct can also be accessed by post and phone.
