The Credit Crunch which has resulted in much higher interbank rates continues to benefit savers. The Halifax's flagship online savings account, the 'WebSaver' on face value offers a relatively low interest of just 5.3%, but dig a little deeper and you would be surprised by the short-term fixed rates currently available. starting at 6.30% and rising to 6.75%

The instant access Halifax WebSaver account serves its purpose in day to day activity as stop gap for short-term deposits, with the longstanding key benefit of instant transfers between accounts such as the current account as well as including standing order facilities. Though at 5.3% the instant access rate does not represent a great rate for anything other than ultra-short-term holdings, especially given what's lurking under the Halifax hood barely a few clicks away are :

I last highlighted the benefits of Halifax websaver on 16th July 2007, the current rates represent mixed improvement, which seems to confirm that they may not last for much longer.

21st September 2007

16th July 2007

Term	AER	Gross pa	Net pa
3 months	6.27	6.13%	4.90%
6 months	6.71	6.60%	5.28%
9 months	6.45%	6.40%	5.12%
1 year	6.30%	6.30%	5.04%
2 year	6.75%	6.75%	5.40%

Term	AER	Gross pa	Net pa
3 months	6.29%	6.15%	4.92%
6 months	6.40%	6.30%	5.04%
9 months	6.50%	6.45%	5.16%
1 year	6.53%	6.53%	5.22%

So there is now NO excuse to keep excess cash sat in the instant websaver account, when you can open a short-term fixed rate at a much better rate, whilst we wait and watch to see what happens to UK interest rates over the coming months.

Key Notes are -

* The Accounts are fixed term and therefore not suitable if you want your money earlier than the term of the fixed rate.

* Minimum Deposit is £500

* A Maximum of 5 websaver's can be held by customers

By Shahla Walayat
http://www.moneyforums.co.uk

Moneyforums is a FREE site which provides UK Money Saving Guides, Tools and Forums including - Credit Score Calculator and the Savings Calculator . Mortgage and Tax Calculators. Money Saving Guides such as Credit Card Stoozing , Savings Tree , Money Saving Guide. Personal Finance Discussion Forums open to ALL, supported by experienced moderators, to discuss any personal finance topics from The best Savings & Deposit Accounts , Regular Savers and Cash ISA's and more.

This article maybe reproduced if it is reprinted in its entirety with links to http://www.moneyforums.co.uk

Disclaimer - Moneyforums.co.uk does not guarantee the accuracy of the information provided, and does not accept any liability for its accuracy, which is for general information purposes only as a starting point for your own research.

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.