Savers Reap Rewards as UK Banks Hike Interest Rates

The UK savings landscape is becoming increasingly competitive as banks and financial institutions offer higher interest rates to attract customers.

The number of live savings accounts paying more than the Bank of England base rate of 3.75% has risen to 1,385, the highest figure in over six years, according to Moneyfacts.

Many providers are now offering instant- and easy-access accounts that pay up to 5% interest, while fixed-rate savings bonds offer even higher rates, with some one-year bonds paying as much as 4.9%.

Rachel Springall of Moneyfacts notes that 'things are looking promising, the choice is really good, but it's all about being proactive and switching, and making the most of these products while they are there.'