Savings rates are currently much higher than a year ago, even though the Base Rate was at the same level then as it is today, recent research has shown.

According to Moneyfacts, a price comparison site, fierce competition among providers means savers currently have the opportunity to access some impressive deals.

Rachel Thrussell, head of savings at Moneyfacts, said: “Even if you take into account that some of these institutions have not yet announced their rate decisions post-base rate change, a drop of 0.25% will still leave them well in excess of those on offer last February.”

She added that those savers looking for security should consider a fixed rate savings bond, provided they don’t need access to the cash for a while. “Fixed rate savings bonds also offer good value at present, and once you’ve signed up, you will not be impacted by the further anticipated downward fluctuations in base rate.

“With uncertainty surrounding stock market investments at present and many commentators predicting further rate cuts as we progress through 2008, there are likely to be many savers ready to take advantage of these opportunities,” Thrussell concluded.