The rise of savings accounts interest rates set to continue, but for how much longer?

As property prices continue to fall and the economy is slipping further into a recession the Monetary policy committee has decided against cutting rates, instead freezing them at 5% for another month.

This may be a bad thing for homeowners, but is good news for savers, as saving rates are likely to freeze along with the bank rates. However, due to the current situation of the economy, banks are still crying out for people to invest in them, which is having an increasing effect on the rates they offer.

The most striking rate change was the Alliance & Leicester eSavers account, rising to 6.56%. Heritable bank also raised its online savers rates to 6.51%. There are several other banks also offering rates around the 6.5% mark

These are all exceptional rates, but now is the time to take full advantage and start saving as predictions suggest that rates are set to plummet by the end of the year. Shop around for the best savings account rates to find the best deal today.

If you're looking for a simple savings account that doesn't incur any withdrawal penalties then have a look at the Kaupthing Edge instant access savings accounts. It pays 6.55% and guarantees to keep interest rates 0.3% above the bank rate until 2012.

If you don't mind locking your money away for a year you can benefit from some excellent rates in excess of 7%. Take the ICIC fixed rate account, it offers a massive 7.20% on a £1000 minimum deposit. Fixed rate bonds offer slightly lower interest rates of around 7% as it is too risky for banks to offer as high rates for longer than 12 months. Although there are exceptions to this rule, for example Kaupthing Edge offer a massive 7.67% on a 3 year fixed term account

The best thing about these accounts is that they are not affected by changes in the Bank of England base rate and allow you to know exactly what your return will be.