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Better savings rates around the corner

It has been predicted that savers could soon be seeing much improved rates of interest.

For months interest rates on most accounts have been tumbling as the Bank of England has steadily reduced the base rate to just 1 per cent.

However, banks and building societies are keen to attract more cash in order to help boost their liquidity and to give more substance to their balance sheets.

As a result some observers are forecasting that the competition for cash could see interest rates taking a turn for the more productive.

Several building societies have already launched new fixed-rate bonds, while deals on cash ISAs could mean much healthier rates of return.

Michelle Slade of Moneyfacts, the financial data company, said: “Early indications are the ISA season is going to be as fierce as ever. We’re already seeing providers launching new higher-rate products and more deals are expected in the next few weeks.”

As the new tax year approaches, savers are being advised to look out for competitive ISA offers.