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Savers are benefiting from sharp competition among providers following the June 0.25 percentage point rise in Bank of England base rate to 4.5 per cent.
Cahoot has launched its second internet-based savings account, paying a top 5.5 per cent before tax (4.4 per cent after 20 per cent savings tax) on balances up to £50,000. The rate puts it ahead of Alliance & Leicester's Online Saver, at 5.1 per cent (4.08 per cent). Leeds & Holbeck's new internet account pledges to pay Bank of England base rate - currently 4.5 per cent - plus an extra 0.55 percentage points before tax until March 2 2005 - worth 5.05 per cent before tax ( 4.04 per cent) on a minimum £100. Savers will benefit in full from any rise in Bank of England base rate before March next year. A further rise is widely predicted next Thursday (5 August) following the Bank's monthly meeting.
Coventry Building Society's new internet-based NetSave Easy Access account pays 5.4 per cent (4.32 per cent) on a minimum £2,000 with the rate fixed until June 30 next year. After this you can take your money out without any loss of interest and earn the equivalent of Bank of England base rate until June 30 2006.
The AA's new telephone-based account has a headline rate of 5.11 per cent before tax, but this is boosted by a big bonus of 0.7 percentage points before tax, payable for one year. The underlying rate is 4.41 per cent before tax (3.53 per cent). There is no guarantee the rate will rise in line with base rate.
New attractive high-street deals are also appearing. Skipton's Branch Access, which you run with a passbook, pays 4.25 per cent (3.4 per cent) on £500 excluding the short-term bonus. The maximum you can have in the account is £5,000. There is a guarantee to pay at least Bank of England base rate less 0.25 percentage points until the end of the year.
Woolwich's new Branch Saver passbook account starts off at 3.6 per cent (2.88 per cent on £1,000) and promises the rate will move in line with Bank of England base rate until next April.
For savers willing to give notice on their savings, Chelsea's new Call-Direct Guaranteed 30 (30 days' notice is required before a withdrawal) pays a top deal on telephone accounts.
Notice accounts are often poor value, as banks and building societies will launch accounts with top rates then chip away at them. But this one, paying 5.25 per cent (4.2 per cent) on a minimum £500, guarantees this rate, or base rate if higher, until 1 August 2006 - after which you have easy access to your money.
Some savers have seen the full 0.25-point rise in line with base rate, but others have to make do with 0.2 or even 0.15 points.
Halifax raised the rate on its net-based Web Saver by 0.2 points to 4.7 per cent (3.76 per cent) or 4.2 per cent (3.36 per cent) if you have a cash card with the account. Since the base rate began to rise last November these savers have seen a 0.85 point rise against a full 1 point rise in base rate to 4.5 per cent.
Halifax raised the rate on its new Isa Saver Direct telephone-based account by 0.25 points to 4.9 per cent tax-free. But those in its branch-based Isa Saver with up to £21,000 earn 3.9-4 per cent.
Abbey raised rates on its flagship accounts by the full 0.25 points, including the Postal Isa (to 5.1 per cent tax-free) and e-Saver, where rates start at 4.35 per cent (3.48 per cent). But savers in some closed accounts, including Investor 30 and Instant Saver, will see smaller rises of 0.15 to 0.2 points. These pay appalling rates of less than 1 per cent (0.8 per cent) on sums up to £50,000.
Nationwide savers have seen rises of 0.2-0.25 points this time around. Its e-savings goes up to 4.75 per cent (3.8 per cent). Cash mini-Isa holders will only see a 0.2-point rise to 4.65 per cent.
Best buys
Easy access (high street): Alliance & Leicester 3.55 per cent for £1; Tesco 4.25 per cent for £15,000, card accounts; Skipton 4.25 per cent for £1-£5,000.
High-interest cheque account: Cahoot 4 per cent on £1 (internet account).
Children's accounts: Alliance & Leicester First Save 5.25 per cent, min £1.
Monthly income: Fixed-rate term accounts: Birmingham Midshires 5.47 per cent fixed for 1 year, min £1; Coventry BS 5.8 per cent fixed for two years, minimum £1,000, Coventry BS 5.9 per cent minimum £1,000, fixed for three years.
Cash mini Isa: Intelligent Finance 4.76 per cent. Easy access account (taxable): ING Direct 4.6 per cent. Notice account: Chelsea 5.13 per cent, 30 days' notice.
Cash mini-Isa (easy access): Abbey 5.10 per cent on £1. Fixed rates: Yorkshire BS 5.25 per cent, fixed for 1 year, min £100; Northern Rock at 5.5 per cent, min £500;
Postal/telephone accounts: ING Direct 4.85 per cent on £1; Intelligent Finance 4.5 per cent on £1. AA Savings 4.41 per cent (ex. 0.7 percentage point bonus for one year)
Online accounts: Cahoot 5.5 per cent; Alliance & Leicester Online Saver 5.10 per cent, both on min £1. Leeds & Holbeck, 5.05 per cent, min £100.
· Heather Connon is away
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