Banks and societies raise rates

Several more banks and building societies have digested the last base rate hike on February 10 and begun to adjust interest rates on their savings accounts.

Halifax has raised investment rates by a corresponding 0.25%, its Instant Saver account now returns 5% gross (4% net) on a minimum deposit of £500. Its Premium Savings Direct now pays an extra 0.25% at 5.5% gross (4.4%net) on investments of at least £10,000 and 6.25% gross on balances of £100,000.

The bank is rewarding savers with at least £5,000 by raising the gross rates by 0.55% from 3.45% to 4% gross (3.2%net).

Abbey National has also raised its savings rates by 0.25%, Its Direct Saver account now returns 6.55% before tax, 5.24% net, on a minimum deposit of £2,000. Interest rates on its 90-Day Notice account now start from 3.65% gross (2.92% net) on a minimum deposit of £2,000, rising on a sliding scale to return 5.53% gross (4.42% net) on balances of at least £200,000.

Its smaller rival, the Portman Building Society has revamped its 90-Day Notice Account as Premier Account paying 5% gross, 4% after tax, on a minimum deposit of £2,500 with the top tier returning 6.5% gross (5.2% net) on an investment of at least £50,000.

For investors who prefer constant rates of returns, the Nationwide Building Society has launched a two-year fixed-rate deal paying 7% gross (5.6%net) on a deposit of just £1.

National Savings, the state-controlled bank, has raised investment rates on many of its accounts. New rates on the third issue of its two-year index-linked savings certificate, which go on sale on March 9, are set at 3.15% tax-free in addition to index-linking. Tiered rates on its investment account will rise by between 0.35 and 0.4 of a point from March 9.