Savings levels fell by more than £7bn in the second quarter of this year, as worried Britons rushed to repay their debts, at the rate of 7p for every pound saved during this period, according to unbiased.co.uk, the professional advice website.

Repaying more debt than they are borrowing is a trend last seen among British consumers in Q4 of 2008, at the beginning of the downturn.

The Post Office today announced the launch of a new Online Saver account, offering 2.75% AER* variable, including a guaranteed 12-month bonus and no withdrawal restrictions or penalties. 

For annual interest payment the bonus is 1.25% gross/AER, and for monthly interest payments it is 1.23% gross/1.24% AER).

Over the past 12 months almost a third (31%) of UK adults have drawn on savings and investments to supplement their income, according to new research from Schroeders asset managers.

Collectively they have used an estimated £60bn of their savings and investments to cover living expenses.

Leeds Building Society has launched a new range of fixed-rate ISA products, which include 1, 2, 3 and 5 year versions.

All the products give access to 25% of the funds, without notice or penalty at any time - which is unusual for fixed rate savings deals - and allow transfers in from other providers.

State Bank of India has launched a chart-topping five-year stepped savings bond with an average interest rate of 4.5% and a top rate of 5.75% in year five.

The unique feature of the bond is that savers can move out of the bond penalty-free after two years if they need the money to spend, or if they can find a better rate elsewhere.

National Counties Building Society, based in Epsom, Surrey, is today launching a tax-free ISA account paying 1% a year plus the change in the retail price index (RPI) until autumn 2015.

The account is designed to fill the gap left by the withdrawal last month of National Savings and Investments' index-linked certificates, which proved too popular.

Britons are saving more of their monthly income than at any other time over the past two years, according to the latest NS&I Savings Survey.

Although the economic environment remains challenging, the proportion of income that people are setting aside (6.90%)  has returned to levels not seen since before the start of the economic downturn.

Sainsbury's Finance has launched a new 12-month Cash ISA, paying a variable rate of 2.6% Gross AER.  Balances start from £500, and customers can save up to the maximum regulated allowance of £5,100 a year.

The account also allows customers to transfer funds in from other cash ISA accounts, and can be managed online and by telephone.  Interest is paid annually.

Consumers are becoming increasingly pessimistic about their future ability to save, according to research from Nationwide Building Society.

This shows that, in the second quarter of 2010, 21% of consumers believed that they would be saving less in six months' time than they do at present. In Q1 of 2010 the figure was just 18%.

Coventry Building Society launches a Bank of England Base Rate tracker bond today that is guaranteed to pay at least 3.20% AER/Gross p.a until 30 September 2012.

This new product claims to offer the best of both worlds: a guaranteed minimum rate of 3.20% AER/Gross with a tracker to ensure that savers do not miss out on future base rate rises. The rate will start to track once the base rate goes above 1%.  There is no cap to the interest rate.

Many banks do not bother to let customers know about changes to savings rates, relying instead on newspaper ads, according to Which? Money.

Only four of the 12 banks and building societies surveyed by the consumer magazine - Cheltenham & Gloucester, First Direct, Co-op and ING Direct - said they guaranteed to inform their customers of all changes to rates, either by email or letter.

Santander today increased the rate on its eSaver issue 2 for new and existing customers to 2.75%. gross/AER. This includes a 2.25% bonus for the first 12 months.

The minimum opening balance is £1 and penalty-free instant access is available online (www.santander.co.uk).

Index-linked savings certificates were withdrawn from sale by NS&I at the start of business today because sales had "far exceeded" the level anticipated. In other words, they were too popular.

NS&I said it had also withdrawn fixed-interest certificates.

The average interest offered on fixed-rate bonds has dropped by 0.35% since March, according to comparison site moneysupermarket.com.

But the launch of a set of bonds called ‘Baroda MAX' by India's third largest bank, Bank of Baroda, may make an impact on competition among providers.

Financial secretary to the Treasury Mark Hoban said today Thursday 15 that the Government plans to launch a number of simplified financial products.

Speaking to the Consumer Financial Education Body conference in Cambridge, he said the products would be developed in consultation with the industry and consumer groups.

Saffron Building Society today 14 July extended its savings range with the launch of a new fixed-rate regular savings product, paying 4.00% gross p.a./AER, which is available to both new and existing members.

It is available immediately by phoning 0800 072 1100, visiting www.saffronbs.co.uk or calling in at any Saffron branch.

The European Commission has proposed to increase the guarantee for bank depositors across Europe to €100,000 (about £84,000) by the end of this year - significantly higher than the current £50,000 limit in the UK.

The EC published a package of proposals today that aim to increase consumer protection and confidence in financial services.

Fixed-rate bonds offer consumers a better return on their savings compared to the equivalent easy access savings account. But savers should check their small print in order to avoid losing hundreds of pounds of interest when their bond matures, as many providers will move the funds into a holding account paying little interest, according to comparison site moneysupermarket.com.

For example, the top paying four-year bond in June 2006 was from Cheshire Building Society, which paid 5.28%. However, if you fail to take action when the bond matures you could see your funds move into an account paying just 0.10%, costing you £518 in lost interest on a £10,000 balance over a year.

The Office of Fair Trading has ruled that there must be transparency over interest rates and a significant reduction in the time it should take to transfer between cash ISA providers, following agreements with the industry.

The changes come as part of the OFT's response to a super-complaint from Consumer Focus about the cash ISA market. Consumer Focus asked the OFT to look at concerns including the time it takes to transfer a cash ISA, the transparency of interest rates and introductory bonus rates.

There are restrictions on 38% of regular monthly savings accounts, meaning that many consumers will not be able to access some of the most competitive deals, according to independent financial research company Defaqto.

Of the 79 regular monthly savings accounts, 30 have restricted availability, and the nine hghest interest-paying regular monthly savings accounts all have a restriction.

Families are savings more than they are borrowing for the first time in more than 20 years, according to the Bank of England.

Deposits into bank accounts totalled £24bn last year, while new loans only added up to £20bn. It was the first time since 1988, when the current records began, that savings outstripped new borrowing.

Saffron Building Society today launched two new fixed term savings products: a three-year bond with stepped rate of interest (Year 1: 2.50% Gross/AER; Year 2: 3.25% Gross/AER and Year 3: 4.00% Gross/AER); and a three-year stepped cash ISA (Year 1: 2.50% Gross/AER, Year 2: 3.25% Gross/AER and Year 3: 4.00% Gross/AER).
 
Each savings product has a minimum investment of £500, while the ISA will accept transfers in or out of this year’s ISA allowance.

The Chancellor should help the 18m ISA savers who are potentially losing out on vital interest as banks drag their feet moving them to better deals, says comparison site moneysupermarket.com.

Introducing ISA transfer codes and implementing new rules which give banks a maximum of seven days to switch customers who are looking for a better deal would save a collective £500m in lost interest for every day knocked off the switching process.

Barclays today launches a two-year fixed rate bond paying up to 3.70%. This comes at a time when a number of fixed-rate offers have been withdrawn or reduced.

The bond offers 3.70% gross p.a/AER on balances above £50,000 and 3.30% gross p.a/AER on balances below £50,000. The minimum investment is £500. 

Saving policy analyst Michael Johnson is calling for radical simplification of the UK savings framework, in Simplification is the key: stimulating and unlocking long-term saving, published today by the Centre for Policy Studies.

The report makes recommendations to simplify the pensions and savings regime and encourage the growth of a savings culture primarily by bringing ISAs and pensions closer together.

Younger savers are overtaking the older generation for the first time, according to Santander Savings.

The 18-34 age group are banking 16% more than the national average and 25% more than over-55s each month.

Savings have still not recovered from their slump in mid-2008, when they dropped from around £39bn to £20bn, according to unbiased.co.uk, the professional advice website. The latest figures show people are now saving just over £16bn, after falling from more than £24bn at the end of 2009.

Unbiased’s Savings Brake research shows the ratio of how much we are borrowing (including unsecured borrowing and equity release but excluding mortgages) to how much we are saving.  The latest figures reveal that Britons are now borrowing 37p for every pound they save.  This is a dramatic change from mid-2008, when they were repaying £1.67 of their debts for every pound they saved.

More money was put into savings accounts with building societies than was withdrawn during April, according to figures from the Building Societies Association (BSA).

This was just the second month in the last 12 that savers deposited more money than they withdrew.

Leeds Building Society has launched the Albion Web Saver account, which pays up to 2.25% interest, combined with unlimited penalty-free access to the money at any time. There are no short-term bonuses.

"We have seen significant inflows into our Albion Saver account, which is the branch-based passbook version of this new account, but we know that many investors prefer the ability to manage their accounts online, whilst benefiting from a highly competitive return combined with unlimited access,” said Kim Rebecchi, Sales and Marketing Director.

As parents, campaigners, academics and City fund management groups fight to save Child Trust Funds, which are due to be scrapped by January 2011, research from unbiased.co.uk, the professional advice website, shows that parents were set to waste £18m in tax breaks this year by failing to take advantage of their children's CTF allowance.

The research reveals that only just over two-thirds (71%) of eligible children have had a CTF account opened for them - 5.1m vouchers issued, 3.6m accounts opened - and only a quarter (24%) of those opened since 2005 have had additional deposits put into them.

More than 7m savers - 36% of UK adults - have withdrawn cash deposits in the past six months to cover general living expenses, according to research conducted in March by Investec Bank.

Investec’s latest Savings Monitor reveals that the average change in cash savings over the past six months was a decrease of 10%, with the most likely use for this cash being to cover their general living expenses. Just over a quarter (27%) spent it on a significant purchase, such as a car, major home improvements or on furniture.

Coventry Building Society today launched the fifth issue of its 1st Class Postal account, a variable-rate, easy-access postal savings account that offers 3.00% AER/Gross p.a., including a 1.00% AER bonus during the first year of investment.

Minimum investment is £1,000 and maximum is £250,000.

Chelsea Building Society, which is now owned by Yorkshire BS, has launched its first online account, the e-Saver Reward, which pays 2.57% monthly interest (2.60% AER).

The account, available online at www.thechelsea.co.uk to UK residents aged 16 or over, can be opened with as little as £1.  An initial deposit can be made by debit card, transfer from another bank or building society account or transfer from another Chelsea account. Additional deposits can be made in the same way.

Longer-term fixed-rate bonds offer the highest interest on savings now, but savers expecting a rise in rates over the next 12 months need not lock their money away:  the top-paying notice account offers the same rate as the best one-year fixed-rate bond, at 3.25%, according to moneysupermarket.com. 

“Making the most of your money is ultimately a long-term game,” says Kevin Mountford, head of banking at moneysupermarket.com.

The inflation rate of 3.4% in March means that, to stop their savings pot effectively eroding away, basic rate tax payers need to find an account paying 4.25%, while a higher-rate tax payer needs to find an account paying 5.64%.

Basic rate tax payers have a choice of 44 accounts to break even, while only four accounts are available to higher rate tax payers.

The number of people who say they are saving for a pension has shown a significant rise compared with this time last year, according to the latest Legal & General MoneyMood Survey.

Whereas in 2009 1 in 5 respondents (20%) said they were thinking of saving for a pension, this year the figure is almost 1 in 3 (32%).

Children have not been immune to the general fall in interest rates: the average child's savings account now pays a gross rate of 1.13%, according to independent financial research firm Defaqto.

This equates to annual interest of only £1.13 on a £100 balance.

Over £700,000 a day - £5 million a week - is currently being invested in Child Trust Funds (CTFs) as we approach the fifth anniversary of their introduction on 6 April 2010, according to research by Children’s Mutual, a leading provider of CTFs.

Investec Bank is withdrawing its High 5 Account to new clients, with immediate effect.

Existing High 5 clients will not be affected by the withdrawal, but a maximum deposit limit of £100,000 will be implemented. Existing clients currently above the maximum deposit limit will not be affected. They will be notified of this change in due course.

Andy Parsons, Advice team manager at retail stockbroker The Share Centre, explains the current ISA allowance situation and recommends funds that investors may wish to consider for their ISAs.

With only three weeks left until the end of the tax year, Britons are set to pay £9 billion more in tax than they need to if they don't take advantage of their cash ISA allowance.

Anyone who had started saving in an ISA ten years ago and saved the full annual allowance each year could now have over £40,000 set aside. In reality, the average balance is still relatively low. Only 50% of savers have an ISA with the highest regional average balance to be found in the South-East (£6,876), followed by Northern Ireland (£6,806) and then the East Midlands (£6,654).

UK equities, emerging markets, global equities and income funds are the top four asset classes IFAs expect to be recommending to their clients this year, according to a survey of IFAs undertaken at the Joint Investment Forum 2010. 

Next on the IFAs recommendation list are: UK commercial property, absolute return and European equities, with each asset class polling 50% or more respondents.

The findings from a poll of more than 1,000 IFAs conducted by Gartmore, M&G, Newton and Schroders at the ninth annual Joint Investment Forum reveal that IFAs are looking to diversify their clients' portfolios across a wider range of asset classes compared with that of last year.

Since the Bank of England lowered the base rate to 0.5% twelve months ago, the number of savings products paying 0.5% interest or less has increased by 41%, according to MoneyExpert.com.

An analysis of instant access accounts, notice accounts, regular savings, fixed rate bonds and ISAs revealed that the total number of products paying 0.5% or less has risen from 620 to 872.

Most people are aware of ISAs, but the change in ISA limits is causing some confusion, according to research by Lloyds TSB.

- Just one in 10 (11%) know what the current Cash ISA limits are

Mortgage rates have been falling since last November, but in order to fund the cuts savings rates have been falling too, according to the latest research from Moneyfacts.

The largest rate reductions have been on fixed-rate bonds. One year bonds have seen their average rate drop by 0.65% in the last four months, while four and five year bonds have dropped by 0.60% and 0.55% respectively.

The Barclays Golden ISA issue 2  is a variable rate savings account, paying 3.10% AER, including a 1% bonus for the first 12 months. It allows instant penalty-free access, but does not permit transfers in - so those looking for a better deal on their existing ISA balances will be disappointed to have been frozen out.

An even better rate is available on the Santander, which pays 3.5% on the same terms.

The amount of money the population is saving has decreased this winter to its lowest level for more than two years, according to NS&I's Savings Survey.

On average, the British public is now setting aside 6.25% of monthly take-home income. This figure has fallen consistently since this time last year (6.48%), and is at its lowest level since summer 2007 (6.22%). 

Leeds Building Society has launched a 5-year fixed-rate ISA paying 4.60% tax-free.

There is also unlimited access to 25% of the amount invested at any time, without notice or penalty. The minimum opening balance is £1.

Santander and Alliance & Leicester have launched Flexible ISA, a variable-rate Cash ISA paying a minimum guaranteed rate of 3.50% AER for one year.

Flexible ISA guarantees to pay at least 3% above the Bank of England base rate for the first 12 months; and the rate will not fall below the minimum rate of 3.50% for the first 12-month period.

Northern Rock savers will lose the government's 100% guarantee on their deposits on 24 May, it was announced today.

The guarantee has been in place since 2007, when the government was struggling to halt a run on the bank.

Birmingham Midshires today launched a four-year fixed rate postal bond, with a minimum investment of £1. Interest is 4.50% yearly (4.41% monthly).

Earlier access is permitted on 320 days’ loss of interest in year one, 270 days in year two, 180 days in year three and 90 days in year four.

One in 25 motorists polled by esure are planning to pick up a new ‘10’ plate car from 1 March, but failing to haggle and check out both financing and insurance costs could leave them considerably out of pocket.

The research commissioned by esure car insurance reveals that, despite having only just come out of recession, nearly a third (33%) of motorists polled would not consider haggling on their next car purchase – even though hefty savings could be made.

Twenty-eight to forty year olds are so consumed with nostalgia for their youth that they are neglecting to save for their future, according to a report entitled ‘The Re-Run Generation', published today 4 February by Standard Life.

Only 53% of the so-called Re-Runners are saving for their future. And only just under one in three (29%) of those questioned for the survey admitted to feeling anxious (22%) or filled with fear (8%) about growing up and getting older.

Falling interest rates on savings over the past 18 months have been bad news for people on modest fixed incomes. These record low rates made ISA benefits barely worthwhile, and made it almost impossible to find a savings account that keeps pace with inflation.

Save Our Savers (SOS), an organisation that will lobby for a better deal for savers, will be launched tomorrow, Tuesday.

SOS proposes to draw attention to the lack of accounts that offer a decent return to savers, while criticising poor products and a general lack of incentives to save.

Companies that advertise on televison encouraging people to sell their unwanted gold by post are offering consumers shockingly bad value and should be avoided, reveals a new investigation by consumer champion Which?.

Yorkshire' building society members have already saved more than £3m in the Society's Christmas Saver account - launched earlier this month - which pays a fixed interest rate of 3.50% gross/AER.

The account will be withdrawn at close of business on Saturday 30 January. 

Almost three-quarters (72.5%) of the most consistent savings accounts are offered by building societies, according to the January 2010 Moneyfacts Consistency Survey.

National Counties has the most consistent products, with five in the tables.

Leeds Building Society has launched new fixed-rate ISAs paying up to seven times the current Bank of England Base Rate.

They are a 3-year fixed-rate ISA at 3.50% and a 2 -year fixed-rate ISA at 3.00%.

The Nationwide Savings Index by four points in December, with a sharper drop of 12 points for the Importance of Savings Index.

Consumers saw saving money as less important than in previous months, with Christmas shopping and  the upcoming VAT increase as likely factors in people seeing saving as less important.

Coventry Building Society today launched the third issue of its 1st Class Postal account, offering 3.30% (variable) plus the flexibility of easy postal access. Savers can make four penalty-free withdrawals (minimum £1,000) each year.

The rate includes a 1.30% AER bonus during the first year of investment.

Yorkshire Building Society this week launched a new Fixed Rate Cash ISA paying 3.25% pa/AER and maturing in February 2013.

The new tax-free savings account also offers a monthly interest option for those who rely on their savings for income.

Friends Provident has come up with ten savings tips for the New Year, to encourage people to start planning now for retirement. Here they are:

1 Check how much you have currently saved for retirement. Talk to your IFA or pension scheme provider(s) to get information, and if you have had more than one employer you should track down what pension entitlements you may have earned from your time in employment. Many company pensions are provided through specialist providers who you can contact directly about the benefits you may have earned. It's also vital to understand what form any company pensions take - are they defined benefit schemes where the amount you will receive is ‘guaranteed', or defined contribution schemes, where the pension that will be paid is based on the value of your investments when you come to retire? Understanding what you have earned so far is a big step towards saving enough for retirement.

Vernon BS has launched a fixed-term cash ISA, maturing on 28 February 2011, with a minimum investment of £1,000, paying 3.25% on maturity.

No earlier access or additions are permitted, but transfers out are allowed without penalty.

The Icelandic parliament has approved a plan to repay €3.8bn (£3.4bn) to British and Dutch savers, more than 320,000 of whom lost out when the Icesave online bank collapsed in 2008.

The money, - which represents 40% of the Iceland’s gross domestic product, will be repaid gradually, staggered until 2024. It will go to the two governments, which partially compensated savers when the bank failed.

More than one in five parents have been borrowing from their children's savings accounts, with 44% of them borrowing between £200 and £500, according to a survey of 3,000 parents by child trust fund provider Engage Mutual Assurance.

Eighty two per cent of parents who admitted to borrowing claim the money they have taken is merely a loan, and they intend to pay it back as soon as they are a bit more flush.

Long-term fixed rate accounts will continue to offer savers the best returns in 2010, according to New Year predictions by finance information service Moneyfacts.

Although savings rates overall are expected to remain broadly unchanged on this year, it is thought fixed rate bonds and ISAs requiring savers to lock their money away for five years or more will still offer the highest rates.

Yesterday’s figures revealing that inflation increased by an annual rate of 1.9% in November were further bad news for savers.

According to research from Moneyfacts, the figures mean that the real return on an average no-notice savings account after basic tax and inflation now stands at minus 1.25%, the lowest since May this year.

National Savings & Investments (NS&I) has pulled some of its most attractive accounts, less than two months after they were launched.

NS&I said the latest issues of its three and five-year fixed-rate guaranteed growth and income bonds, with interest rates of between 4.3% and 4.6%, had proved very popular since the rates were sharply increased in late October, and had now been withdrawn from sale, with immediate effect.

Fixed-rate savings have been by far the most competitive element of the savings market throughout 2009, but a number of top deals have been pulled over the past 10 days as a result of excessive demand, according to Andrew Hagger of Moneynet.

The list of casualties includes:

Yorkshire Bank has launched new rates of up to 5.10% on its Term Deposit account, aimed at people who want to put away a lump sum and don’t want to make any withdrawals or additional deposits.

A range of products are on offer, with terms from three months to five years. The minimum opening balance is £2,000 and the maximum £5m.

Britons believe they could last for 10 months on their savings if faced with the prospect of not working and receiving no income. In fact, according to The Reality Gap Report, out today, they could survive for just half that time, a mere five months.

While 43% of Britons think they could use their savings to pay the bills following redundancy, the reality is that 38% of the working population could not survive beyond one month on savings alone.

The main reason is that people believe their average monthly outgoings to be £892 - but the reality is £1,378 per month.

The Co-operative Financial Services (CFS) has launched a three-year bond with a fixed rate of 5%.

The first new product to be launched simultaneously by Britannia and The Co-operative Bank following their merger, the bond is available from today, 25 November, through the network of more than 300 branches.

Only one in six (17%) easy access savings accounts offer a rate guarantee, according to research from Sainsbury's Finance.

In addition, only 5% (24 accounts) promise to pay a rate above the Bank of England bank rate.

It’s no surprise to read reports that fixed-rate bonds have a relatively short lifespan at the moment, says Andrew Hagger of Moneynet.co.uk. He goes on:

“This is a symptom of a very active and competitive market and a desire amongst providers to retain best buy status in order to attract maximum levels of retail deposits.

Pensioners who have overpaid tax on their interest from savings could be eligible for a tax windfall, HM Revenue & Customs (HMRC) announced today.

The possibility of some extra money for pensioners came as HMRC launched its TaxBack campaign, which aims to encourage pensioners who have overpaid tax on interest from savings to claim it back, and register for savings interest to be paid gross in future, if they're non-taxpayers.

Vernon Building Society has launched a new regular saver account. You can save up to £500 each month and also have the flexibility to adjust the amount of your monthly payment as long as it is between £25 and £500 each month.

The interest rate is variable, currently 3.00% AER, which includes an annual 2% conditional bonus.     The bonus will be applied providing that you have made no more than 2 withdrawals and missed no more than one monthly subscriptions during the period 1st April to 31st March, or from the date of opening the account to 31st March).

Low interest rates are playing havoc with the incomes of people, such as pensioners, who rely on their savings to maintain their standard of living. According to financial information service Moneyfacts, almost half of all variable rate savings accounts pay 0.5% interest or less – and some as little as 0.1%.

What is more, 10% of all savings accounts have cut their rates since March months, even though the Bank rate has remained at 0.5% for the whole of that time. A mere 3.5% of accounts have upped their rates rise during that time.

Following the merger of Britannia and The Co-operative Financial Services in August, savers can now open a choice of two Britannia fixed-rate ISAs in any branch of The Co-operative Bank.

The ISAs are the first Britannia products to be made available to Co-operative customers through Bank branches.  The Bank did not previously offer a fixed-rate product.

Cheshire Building Society, a trading division of Nationwide Building Society, has launched a 30 Day Postal Saver Account, offering a bonus rate of 3.00% gross/AER, on a minimum deposit of £1,000 for the first 12 months, providing a minimum balance of £1,000 is maintained and no more than four withdrawals are made during the first year.

If the bonus conditions are not met, a fixed rate of 0.10% gross /AER is payable for the lifetime of the account.

Savers looking to lock their money away for a short term will welcome the news that NS&I has today launched a one-year fixed-rate savings bond, paying 3.95% gross/AER.

This product has shot straight to the top of the one-year fixed rate bond best buys and is a full 0.20% higher than its nearest rival, says Andrew Hagger of Moneynet.co.uk.

The increase in the amount that can be saved in an individual savings account (ISAs) is one of the factors that will help people to save for the future, a leading financial services commentator believes.

Stephen Lansdown, a director of Hargreaves Lansdown, says the country has woken up to the fact that debts need to be repaid and that once indebtedness is reduced consumers will start to build up reserves.

Savers affected by the collapse in October 2008 of Icesave - the internet arm of Icelandic bank Landsbanki - have one last chance to claim compensation for any deposits they had in the bank.

About 400,000 savers were affected when Landsbanki collapsed.

All four of the Nationwide Savings indices have bounced back, following last month's falls. The Savings Index is now at its highest level since November 2008.

The most striking rise was in the Future Savings Index, which increased 16 points to 121. There are now more people who believe they will be saving more in six months' time than they do now (21%, an increase of 3% from August) than people who believe they will be saving less than they do now (17%, a decrease of 3% from August).

If someone over 50 invests the extra £3,000 ISA allowance in a UK corporate bond fund, paying an annual return of 5% before charges, they could add almost £40,000 to their savings pot over 10 years, and £150,340 after 25 years, according to Fidelity International.

In addition, Fidelity's analysis underlines how important it is to understand that an ISA keeps the taxman at bay. Outside an ISA the taxman is going to take part of the investor's return, inside an ISA he is not.

Individuals are to be encouraged to look after themselves financially and take more resposibility for their wellbeing, in an initiative launched today by the Association of British Insurers.

The ABI has lauched a Savings Manifesto, suggesting ways to boost pensions and other savings, including early automatic enrolment into workplace pensions, automatic increases in pension contributions and more flexibility on when people can buy annuities.

Savers need to keep an eye on the maturity dates of fixed-rate bonds, to make sure they keep on getting the best rate.

Once bonds mature providers will often shift money into a standard easy access savings account, so it's vital to keep an eye on your money and act when your original deal comes to an end.

The website moneysupermarket.com notes, for example, that savers who took out the five-year fixed-rate bond from Capital One back in 2004,will now see their interest rate drop by 5.1%, meaning a £15,000 deposit now earns £765 less per year in interest.

Principality Building Society's is offering a new 4-year fixed-rate bond, paying a guaranteed 5.10% AER.

The minimum investment is £1,000 and the maximum £250,000, and interest can be paid monthly or annually.

Saga is launching a two-year fixed-rate bond designed for the over-50s today, 6 October. It pays 3.85% AER on balances over £30,000 and 2.5% AER on balances under £30,000.

“Saga agrees that it is unacceptable for ISA providers to offer lower rates on products for over-50s than they offer on their standard ISA accounts,” said Paul Green, head of communications, Saga Personal Finance.

Nationwide Building Society will on 6 October launch a new three-year Fixed Rate ISA (FRISA) Bond, paying 4.00% gross p.a./AER, exclusively for savers aged 50 or over on or before 5 April 2010.

Savers aged 50 or over will be able to use their full new annual ISA allowance of £10,200.  This new limit is an increase of £3,000, and means that up to £5,100 can be saved in a cash ISA and the remaining balance in a stocks and shares ISA.

Around one in 10 UK adults with a Cash ISA (equivalent to 2.1m people) are planning to reduce the amount they put in, or stop regularly saving into, these tax-efficient wrappers over the next six to 12 months because the rates are so low, according to new research from Investec Private Bank.

A further 800,000 savers with a Cash ISA intend to close their account altogether over this period for the same reason.

Leeds Building Society has launched new 2-year base rate tracker (BRT) mortgages from 3.20%, together with a new 2-year non-locked-in fixed rate mortgage at  4.60%.

All the mortgages have no higher lending charge and allow a minimum of 10% capital repayments each year, without notice or penalty. 

A mere 5% of the over-50s know what the new ISA limits being introduced on 6 October will be, according to a study by Saga – which concludes that the Government and the savings and investment industry need to do more to inform people about the increase. 

  
ISA limits are being increased to £10,200 for the over-50s, but research conducted by the Saga Populus Panel, the largest research panel of over-50s in the UK, shows that over half (54%) have no idea what the new limits will be.

M&S Money is launching a new Fixed Rate Savings option from 1 October. Guaranteed interest rates of up to 4% AER/gross are available over 1, 2 and 3 years.

This is a limited offer and replaces the previous issue which offered rates up to 3.00% AER/gross.

Barclays today launches a new range of one, two and five-year fixed-rate bonds paying up to 5.25%.

The top paying bond is for five years paying 5.25% gross p.a./AER, with a minimum investment of £500.

For customers who want a shorter term, a two-year fixed-rate bond is available, paying up to 4.25% gross p.a./AER for balances above £40,000 and 3.75% gross p.a. for balances from £500.

Principality Building Society is launching a fixed-rate ISA designed for the over-50s are looking to make the most of the new higher tax-free savings allowances.  It pays 3.80% AER until June 2012.

The new ISA launches on 21 September and is available to anyone currently aged 50 or who will turn 50 before the end of the current ISA year on 5 April 2010.

Bradford & Bingley Savings launched a new Two-Year Fixed-Rate eBond today, paying 4.35% gross/AER.   This new rate is available for both new and existing customers via Bradford & Bingley online, with a deposit of between £10,000 and £2m. No withdrawals are allowed before 1 October 2011.

"We are committed to offering customers savings accounts with competitive rates that enable people to save and plan for their futures,” said Reza Attar-Zadeh, Director of Savings and Investments.

Royal Bank of Scotland and NatWest banks are to slash their overdraft charges in advance of a decision of the new Supreme Court on whether or not the Office of Fair Trading (OFT) can regulate these charges.

From next month customers of the two banks will be charged just £5 for having a cheque bounced, compared with £38 now. The fee for paying an item on an overdrawn account falls in half to £15.

Financial imprudence is linked to other impulsive behaviour such as overeating, smoking and infidelity, according to a new study led by University College London (UCL) researchers.

The study, conducted through the BBC website with more than 42,000 participants, and published in the journal Personality and Individual Differences, measured people’s financial impulsiveness by asking whether they would they prefer to receive £45 in three days or £70 in three months.

As children celebrating their seventh bithday are due to receive their second payment, The Child Trust Fund (CTF), the Government's flagship policy to increase social mobility and alleviate child poverty, could be axed in a forthcoming squeeze on public expenditure. 

Savers who change their variable rate savings account on a regular basis are likely to get a better return than those who stay in the same account due to the fact that inertia and loyalty seem to reward the provider rather than the customer.

The average rate payable on an instant or easy access savings account for a £1,000 balance is currently 0.85% gross AER. The corresponding rate for such accounts that have been launched in 2009 is 1.93% gross AER as opposed to 0.68% gross AER for accounts launched before 2009.

Leeds Building Society has launched a monthly savings account aimed at helping the over-60s to manage the increased pressure on their finances during the winter months.

The new Winter Fuel Saver account pays 5.12% AER during the winter months (until 28 February 2010), when customers are experiencing their biggest fuel bills, with an overall AER of 2.66%. The minimum investment is £100, and the maximum £1m (£2m for joint accounts). No withdrawals are allowed until maturity on 1 September 2010.

In both cases the income is fixed and will be paid regardless of the performance of the index.

Sainsbury's Finance announced today that it would be extending its Internet Saver special offer by two weeks, until 5 September.

The special offer pays a rate of 2.9% Gross AER (variable) to customers opening an account with deposit balances from £1,000 up to £500,000 for 12 months from account opening.

NS&I (National Savings and Investments) is increasing the interest rates paid on some of its savings products from today (19 August), for the first time in up to two years.

Interest rates may be low, but there is a big gap between base rate and saving rates, and the outlook for inflation remains low. All of which means that there has never been a better time to save.

That is the view of moneysupermarket, the financial comparison website.

Join investment experts Neil Dwane, manager of the Allianz RCM European Equity Income Fund, and Andy Parsons, Advice team manager at The Share Centre, live from 12.30pm on Thursday 13 August to discuss ways for you to keep a hold of that income stream and to provide expert answers to your questions. So submit your questions now and come back and join Neil and Andy when we go live on 13 August.

An estimated 5,000 British savers who have up to £3bn in bank accounts in Liechtenstein will be encouraged to own up to their secret stash.

Sainsbury's Finance has announced a new Internet Saver special offer that will pay a rate of 2.9% Gross AER (variable) to customers opening an account with deposit balances from £1,000 to £500,000.

Those opening an account and funding it with at least £1,000 within 30 days will receive a bonus of 1,000 Nectar points

Scottish Widows Bank, which is part of Lloyds Banking Group, today launched a 5-year fixed-rate deposit account, paying 5.25% gross/AER. term.

Start date is 23 September 2009 and the final maturity date is 22 September 2014. Funds received in advance of the start date will earn interest at Bank of England base rate (currently 0.50%) up to the start date.

The battle for retail funds shows no signs of abating, and today West Bromwich BS has stormed the best buy tables for fixed rate savings, says Andrew Hagger of Moneynet.co.uk.

The mutual is now the top payer over 1 year (3.90%), 2 Years (4.45%) and 5 Years (5.45%) for fixed-rate savings bonds.

This week Santander's UK savings brands - Abbey, Alliance & Leicester and Bradford & Bingley - are launching new issue fixed-rate savings accounts paying up to 4.15%, available to both new and existing customers.

The top rate of 4.15% is payable on the two-year fixed-rate bond with an investment of £25,000-plus.

Of the 2,265 savings accounts available at the end of June, 55.3% had interest rates paying over the Bank of England Base Rate of 0.50%, according to the monthly Moneyfacts Treasury Report.

The period of preferred accessibility continued to be the biggest driver of returns for savers, as the average no-notice rate hovered around 0.80%, while the average one-year fixed rates paid 3.04%.

More and more lenders are launching accounts that restrict the number of cash withdrawals. Research by Moneyfacts has found that in July alone Bank of Scotland, Coventry BS, Halifax, Lloyds TSB, Royal Bank of Scotland and West Bromwich BS all launched accounts that put restrictions on the number of withdrawals that the holder can make.

Should that limit be broken, a drop of interest on funds is incurred. For example, Lloyds TSB’s Incentive Saver is a 12 month fixed-term variable rate account that pays interest of 3%. However, for each month there is a withdrawal, interest is lost on the full balance for that month.

The minimum is £100, and the maximum investment £1m, or £2m for joint accounts.

Banks and building societies are adding ever-bigger bonuses to their savings accounts as a temporary measure to attract savers, according to financial information website moneyfacts.co.uk.

In the last two years the percentage of variable rate savings accounts including a bonus has increased from 10.8% to 16.4%, while the size of the average bonus has nearly doubled from 0.64% to 1.10%.

These offers will be available until 3 September 2009, or earlier if sold out.

Nationwide Building Society today announced details of a new range of fixed-rate ISA Bonds, which all offer a guaranteed interest rate for savers looking to take advantage of their annual tax-efficient allowance.

With effect from Friday 24 July, Nationwide's new Fixed Rate ISA Bond range will include:

Coventry Building Society is offering a limited issue stepped fixed-rate bond, over three years, where the rate is guaranteed to rise in the second and third years.

The bond offers a return of 4.00% to 31 August 2010, rising to 4.50% until 31 August 2011 and then 5.00%  to 31 August 2012.  

The bonds can be opened at any of Barnsley’s eight branches, and the e-bonds can be opened online by visiting  www.barnsley-bs.co.uk.  The minimum deposit is £100, and the maximum investment is £500,000.

Older investors could miss out on the opportunity to save extra cash in an individual savings account (ISA) this year to take advantage of a rule change made in the last Budget. Despite the savings limit for the over-50s being raised by Alistair Darling from £3,600 to £5,100 later this year, there is no requirement for the banks to notify savers of their rights, nor are they required to accept extra deposits from savers if they don't want to.

The rise in ISA limits comes into general effect from April 2010, but a concession allows those who reach their 50th birthday on or before 5 April 2010 to qualify for the hike six months early, on 6 October.

A three-year bond paying 5% and a four-year bond paying 5.15% are also available.

The Post Office today announced the launch of Growth Bond Issue 9, offering one, three and five year terms, and rates of up to 4.3% AER.

Post Office Growth Bonds offer savers a guaranteed rate of return over a fixed period of time, and are open to anyone with a minimum investment of £500.

With CPI falling from 2.2% in May 2009 to 1.8% in June 2009, savers are now faced with a far bigger choice of savings accounts that will enable them to get a real return on their money.

1.8% equates to a gross rate of 2.25% for a basic rate tax payer and 3% for a high rate taxpayer.

National Savings & Investments (NS&I) is launching a new 2-year issue of both its Guaranteed Growth Bonds and Guaranteed Income Bonds today, 13 July.  The new 2-year Bonds will only be available direct (via phone or online) from NS&I, and will pay an interest rate of 3.75% per annum and 3.65% respectively.

Customers can invest between £500 and £1m in total in the fixed-rate bonds, with guaranteed rates of interest. The Guaranteed Income Bond offers customers the opportunity to receive their interest as a monthly income, while with the Guaranteed Growth Bond customers will receive their interest at the end of the 2-year term.

Savers disappointed at the Bank of England's decision today to freeze interest rates at 0.5% for the fifth consecutive month, have been warned that base rate could stay low for some time.

Nationwide Building Society announced details of a new range of Fixed Rate Bonds and e-Bonds today, all offering a guaranteed interest rate for savers, and all available from tomorrow Tuesday.

They include a Five-year Fixed Rate Bond paying up to 5.00% gross pa/AER; a three-year bond paying up to 4.25% gross pa/AER; a two-year bond paying up to 4.05% gross pa/AER; an 18-month bond paying up to 3.75% gross pa/AER, and a one-year bond paying up to 3.50% gross pa /AER.

Coventry Building Society today 3 July re-launched its 50 Plus eSave account, which pays 3.25% (AER/gross pa), fixed for 12 months from the date of individual account opening. It also allows unlimited, penalty free access.

The account is opened and operated online, with a minimum investment of £1, and is aimed exclusively  at the over-50s.

Maintaining a comfortable lifestyle is the nation’s biggest financial concern, with one in four funding this by cutting back on protecting the things they love in life.

Meeting the cost of a comfortable lifestyle is a bigger concern than dwindling savings for the nation, with 6.7m people happy to raid their savings and investments to cover day-to-day outgoings, according to a study published by insurance, pensions and investment group LV=.

The horizon is looking at least marginally brighter for savers, according to a new report from MoneyNet - but they will need to keep alert, as the rate won't last forever.

A new generation of recession wedding guests are planning to dramatically reduce their spend this year, according to new research from insurer LV=. Of the 23% of all UK adults who will see friends and family tie the knot in 2009, 2.7m (25%) said they cannot afford to spend as much on the event as before the recession.

The Chesham Building Society is set to launch a table-topping one-year fixed rate bond from tomorrow (Friday 19 June) paying a gross rate of 3.95%. However, the majority of savers can hold off on the Champagne as the deal comes with a minimum balance requirement of £25,000.

In spite of the fact that saving is now harder than ever due to increased job losses and rock bottom interest rates, more people are recognising the importance of putting money aside for a rainy day. This is according to The Nationwide Savings Index, published today.

The TUC has warned today that unemployment will carry on rising for many months even after the UK's economy has begun to pick up - and continue its path upwards until autumn next year at the earliest. It said there has always been a delay between the economy starting to grow and unemployment beginning to fall, as cautious employers make use of capacity among existing staff before recruiting new employees.

British holidaymakers, in their haste to get to the sun, spend an astonishing £1 billion pounds replacing essential items that they've left at home, according to new research by Abbey Credit Cards.

Alliance & Leicester, part of the Santander Group, is offering its Premier Regular Saver Account, paying 7.00% AER, until 6pm on Saturday 13 June. The account is only available by telephone application or during business hours at an Alliance & Leicester branch.

it is also only available to customers switching to an Alliance & Leicester Premier Current Account, and is designed to help those looking to save, by encouraging them to put aside a fixed amount, of between £10 and £250, each month for a year.

Barnsley Building Society, which is owned by the Yorkshire, is launching an instant access Online Saver account, paying 2.50% gross/AER, on Friday 12 June.

The account is available to all level of savers, and can be opened with as little as £1. The maximum holding is £1m. For those who rely on their savings to boost their income a monthly interest option is also available.

Consumer group Which? has issued some advice to travellers following the collapse of Scottish travel firm ScotTravel. Rochelle Turner from Which? Holiday says: "With yet another tour operator collapsing and leaving holiday-makers stranded, it’s really important that people take steps to ensure they are protected should a similar incident occur in the future.

Sainsbury's Finance Internet Saver will pay a higher rate (1.85% above the account's standard rate), on all Internet Saver balances opened between 9 and 30 June 2009, providing the saver does not make more than three withdrawals a year.

Coventry Building Society today launched Poppy Save, a variable rate, limited access postal savings account offering 2.50% AER gross, with four penalty-free withdrawals a year.

In addition, the Coventry will make a donation to the Royal British Legion’s Poppy Appeal, which will equal 0.25% of the average funds held in Poppy Save in each 12-month period, beginning 1 June 2009.  The first donation will be made in the summer of 2010, and each year subsequently.

The range also includes a two-year bond and nine- and 12-month deposit accounts for customers who are looking for a fixed income (of up to 3.75%) and want to know exactly what return they will receive from the outset. Both the nine- and 12-month term deposit accounts require a minimum deposit of £50,000.

The rate includes a 1% introductory bonus for the first 12 month. Savers can invest from a minimum of £1,000 up to a maximum of £500,000, and can make unlimited penalty-free withdrawals when they give 30 days’ notice. In addition, users can choose to have their interest paid monthly or annually.

The sun is shining right on cue for the arrival of the 2009 wedding season. But new research published by Halifax Current Accounts has revealed that the true cost of attending a wedding may not be so sunny.

Abbey will cease to exist as a separate brand from the first quarter of next year, as part of a global rebranding exercise by the bank’s owner, Santander.

Bradford & Bingley savings and Alliance & Leicester will go the same way – by the end of 2010, all 1,300 branches will be known simply as Santander.

Skipton Financial Services, the financial advisory arm of Skipton Building Society, is offering a 2½-year fixed-rate bond through the building society which pays 3.55% and allows immediate access to 50% of their initial investment.

Alternatively, savers can opt for 3.75% in exchange for access to only 25% of their investment, or receive 3.95% by locking their money away until November 2011.

Credit reference agency Equifax has warned that motorists who want to make the most of the Government’s Car Scrappage Scheme, lauched this week, will also need a good credit score if they need finance for their new car.

There are some signs of good cheer on the savings front or first time in five months. The Nationwide Savings Index rose by two points to 75 last month – but is still 25 points below where the index started in June 2008.

Other figures are not so encouraging: just 56% of consumers think saving is important; fewer than half (47%) save regularly; a quarter (25%) save nothing at all; 59% save less than they think they need to, while only 28% feel that they save the right amount, and a mere 16% think now is a good time to save.

M&S Money has announced the launch of its first ever easy access savings account. Called the M&S Everyday Savings Account, it comes with a variable interest rate of 1.56% AER, which includes a 1% bonus for 12 months from the date the account is opened. Interest is calculated daily and paid into the account monthly.

Savers have been having a thin time of it recently, with few options open to them. But things are beginning to look up in the fixed-rate area.

There are now almost 40 fixed-rate bonds offering rates of between 4% and 4.40% gross, according to Andrew Hagger of Moneynet.

Barclays is launching a three-year fixed-rate savings bond paying 4.25% gross pa/AER.

The bond is available to new and existing customers and can be opened with a minimum of £25,000 and a maximum of £500,000. No withdrawals are permitted before maturity.

Honesty in love doesn't always extend to finance, according to research from Halifax published this week. A survey revealed that an estimated 217,000 credit cards are hidden from our partners. The main reasons for having a secret credit card were to buy ourselves items we didn't want our partners to know about; to hide existing debt from our partners and to use in case of emergencies.

If the economic downturn continues to worsen, the inheritance could be significantly lower than many have been expecting. Independent figures show that average house prices have dropped by £42,500 since August 2007 - which would impact the 61% of Britons who think of property as inheritance.

The vast majority of investors (89%) who have put their retirement savings in a SIPP (self-invested personal pension) are confident with their choice and believe they can outperform the professionals, according to a Barclays Stockbrokers survey published this week.

Nationwide Building Society, ahead of Wednesday's Budget, has called on the Chancellor, Alistair Darling, to overhaul the ISA system. The Society says it is keen to encourage a savings habit as well as help first-time buyers save - which will also stimulate the housing market.

A much-mooted 'car scrappage' scheme is now likely to be introduced in Alastair Darling's budget on 22 April, which will give people who trade in old cars for new or nearly-new ones a £2,000 allowance. The move is designed to reverse a recent slide in sales in the UK's car manufacturing industry.

The Bank of England's decision to freeze interest rates last week at their current low of 0.5% has drawn the clearest dividing line between savers and borrowers in history, says Annie Shaw of CashQuestions.com. 

Those looking forward to an Easter break abroad this coming Bank Holiday should be wary of how they pay for their fun once they have arrived. While using your credit or debit card may be the safest and easiest way to fund your trip, depending on the provider, costs can so mount up fast, according to new research from Moneyfacts.

Halifax has announced the launch of its 2009 Christmas Saver account for its social banking customers, that pays a fixed 3%  interest rate (gross).

Aimed at low income households who want to be able to budget for the festive season, the account allows savers to put away between £5 and £200 each month - with a maximum balance of £1,200 - between now and 31 October when it matures.

Alliance & Leicester today launched a one-year fixed-rate ISA with a rate of 3.00% tax-free p.a./AER, designed to appeal to savers looking for a competitive fixed return on their tax-free savings.
 
The branch-based bond has a minimum deposit requirement of £500, and allows transfers in from existing cash ISAs - although these must be requested when the account is opened.

The Financial Services Authority (FSA) has responded to pressure from the Financial Services Consumer Panel (FSCP), by producing a consultation paper on whether the Financial Services Compensation Scheme (FSCS) should provide extra protection for people with one-off large cash deposits.

New branches will open next month in Blackpool, Coventry and Bristol.

That makes Wednesday 25 March this year's Debt Freedom Day, which highlights how much debt we are currently servicing, and how much of our income is being absorbed by paying the interest on our debts, let alone the actual debt itself.

More than a third of people (36%) say they have less money in savings now than two years ago, according to a poll in early March, commissioned by price comparison site moneysupermarket.com.

Almost a quarter (24%) say they didn't have savings two years ago and they still don't.

The energy watchdog, Ofgem, has outlined tough new proposals that would outlaw 'unjustified' price differentials between providers, and attempt to force them to provide a better deal for those unable to change their billing system, such as those using prepaid meters.

Yorkshire Building Society re-entered the tracker mortgage market today with two and three year products available up to 75% loan to value.

The two-year mortgages are priced at 3.39% (BoE + 2.89%) and the three-year mortgages are 3.59% (BoE + 3.09%). Both ranges have a minimum rate of 3% and 3.09% respectively, but are capped at 5.39% and 5.59% and are available for house purchase and remortgage.

Just under a quarter of British adults admit that they don't save anything at all.  Andy McQueen, savings and mortgages director at Nationwide, offers some useful tips on how to get into the savings habit.

1. Check your current account on pay day to make sure you've been paid, and at the same time move £25/£50/£100 into your savings account.

The UK's deepening economic crisis will mean that  the 3.25 million adults who plan to retire in 2009 can expect to receive £2.87 billion less in their pensions than those who planned to retire in 2008, according to the Prudential Class of 2009 retirement survey, which was published this week.

Spring, which officially starts this week, appears to be right on time this year. And when it comes to spring cleaning your finances, there has never been a better year to start on time, too. This is especially the case if you are a first-time buyer, according to recent research published by the Halifax.

Online bank Egg has launched a new Cash ISA paying 2.50% gross pa/AER variable rate, tax free. The product is available to new and existing customers from today, with a minimum deposit of £1 and a maximum of £3,600 per tax year.

Customers can make a one-off deposit, regular payments or just add to it whenever they wish – but existing ISAs cannot be transferred in.

Consumers are settling in for at least another year and a half of  bad economic news, according to research published today by consumer group Which? It shows that four out of five people (80%) believe it will take at least a year for the economy to improve, and almost a quarter (23%) say it will be more than two years.

Barclays is launching the Golden ISA, a cash ISA paying 3.55% gross/3.61% AER interest which is available to new and existing customers and can be opened with a minimum of £1 and a maximum of £3,600.

To qualify for the 2008/2009 tax year, the account must be opened by 5 April, 2009, or from Monday April 6, 2009 for the 2009/2010 tax year. The 3.55% gross/3.61% AER includes a 1% gross bonus for 12 months.

Yorkshire Building Society has expressed public disappointment at the Bank of England's decision to reduce base rate today to 0.5%. The society claims that the move will further impact on savers, particularly those who rely on their savings to boost their pension, and says it will 'do everything within its power to protect them.'

Old-fashioned loyalty to car dealers is becoming a thing of the past, according to new research from Experian. Almost half of car owners (47%) claim they would have their car serviced at a local garage rather than take it to the dealer they bought the car from. 

Energy provider ScottishPower is cutting its prices by an average of 7.5% (or £68) for gas and 3% (or £14) for electricity from 31st March, it has been announced. The average household bill for a dual fuel ScottishPower customer will now drop from £1,369 to £1,286 – but that's still £327 or 34% higher than its average bill of £959 in January 2008, according to calculations from price comparison service uSwitch.