Is there a decent rate for your savings?

The elderly have been hit by the reduction in savings rates recently. As the Bank of England base rate has tumbled down to 0.5 per cent, banks and building societies have not been slow to follow

suit when cutting savings rates in ordinary easy access accounts.

So, is there anywhere you can out your money away, and make more than a derisory amount based on interest rates of less than one per cent?

For the over 60s who may have a maturing bond, a new safe haven may be hard to find. There are some accounts which can give you a decent rate in today’s climate, but there are catches.

As ever, you must look for catches and read the small print.

Lloyds TSB is advertising a 3.2 per cent Fixed Rate Cash Isa, but that rate only applies on amounts over £30,000. Below that, it’s just 1.5%.

Abbey is advertising a 4.01 per cent 2-year fixed rate bond, but this has a minimum deposit of £30,000. Bradford & Bingley has a similar bond. Both banks are backed by Spanish bank Santander.

ING Direct has a 3 per cent cash Isa, but it’s a variable rate, and depends on a bonus too.

What's this?