IS YOUR bank or building society savings account already showing the benefit of the Bank of England decision this month to push up interest rates?
If a second quarter per cent rise, widely predicted for January, actually takes place, the best savings accounts will pay a gross annual return above 6% - the first time they have hit that level since August 2001, when Egg's instant access internet account paid 6.25%.
Savers deserve better times in 2007 after early 2006 saw the big institutions constantly cutting returns on their money.
Will they get them? Financial data agency moneyfacts.co.uk reckons nearly 80 banks, building societies and online creations like Egg and newcomer Icesave from Iceland have lifted rates for savers, many by the full 0.25%.
Savers at Hanley Economic BS and City of Derry BS are enjoying rises of 0.55%, while Coventry BS and Universal BS both granted an extra 0.45%.
The BMW eSaver account - run jointly by BMW Personal Finance and Newcastle Building Society - pays 5.25% gross on instant access, and a whopping 7% if you use a maximum £3,000 saved over a maximum one year period to buy a BMW.
However, Dutch financial group ING, a self-styled savers' champion since entering the UK market in 2003, has raised eyebrows by leaving rates unchanged at 4.75% gross.
Says Andrew Hagger at moneyfacts.co.uk: "Building societies and banks are most generous with best buy accounts which get into league tables. On less popular branch accounts, rises are more likely to be 0.1-0.15%".
These figures affect people's lives, says Colin Jackson at Ilford, Essex-based Baronworth Investments, where clients each hold an average £25,000 in cash.
"More people support their lifestyles with cash than you might expect," says Jackson. "Some have used equity release on their homes, others have sold businesses, others have a family inheritance.
"Many people worry about what the future holds, and fear terror attacks will hit the economy. People recall what happened in recent years to house prices and shares and, if they can get a decent rate on a lump sum, cash is where they want to stay."
