How can I get a better rate for my savings?

Investors stuck in a low-paying savings accounts are being advised to vote with their feet and move their money elsewhere by Which? , the Consumers' Association magazine.

Researchers found that banks and building societies were paying loyal savers a pittance while offering new customers better rates on savings accounts. It named Abbey National, Bristol & West and Woolwich as the worst offenders. All have live easy-access accounts that pay 1 per cent or less even on balances of £2,500. Which? compares this with Nationwide's Invest Direct account which pays 5.55 per cent on balances of just £500.

Some notice accounts also offer meagre returns, although restricted access is traditionally rewarded. Abbey National, NatWest and Woolwich offer accounts that pay savers less than 2.5 per cent on balances of £5,000. By contrast, Yorkshire Building Society's notice account pays 5.75 per cent.

If your money is languishing in one of the low-paying accounts, where can you find a better rate? Moneyfacts compiles charts of savings accounts rates that can be found in the Observer (page 14), on the personal finance sections of Ceefax or Skytext or on the at Moneyfacts website. Which? also publishes the rates in its monthly savings monitor.

Vicki Burn of Moneyfacts says the savings rate will depend on how much you have to invest and the mode of access you choose. Branch-based accounts tend to pay lower rates than those with postal, phone or internet access. She says: 'For example, on balances of £1-plus, Nationwide pays 5.3 per cent to postal account holders, 6.7 per cent to internet customers but 1.2 per cent to branch-based accounts.'

Those with notice accounts may have to wait until the notice period is up before they can switch accounts.

Remember just because an account offers a competitive rate today it doesn't mean it always will. Unless you keep a close eye on it you could find the rate has tumbled, and that other savers are getting better rates on newer accounts.