The worlds central banks announced in December 07 that they would take concerted action to help ease the liquidity crises that has been gripping the financial sector since August 07. Whilst this has had a big impact on the interbank market, this article looks at its impact on the personal savings market.

Whilst borrowers have been the losers, the winners have been savers, however the long fixed rates have been failing of late, but liquidity remains ultra tight at the short-end of the market. This is evidenced in the fixed rate products offered by the Halifax which has actually seen the 3 months fixed rate rise to 6.78% from 6.71% on the last update of 20th Oct 07.

The instant access Halifax Web Saver 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 web saver on 20th October 2007, and warned that the longer term interest rate fixes may not last, which is now transpiring as the 2 year fix continues to drop to 6.35% from 6.75%.

6th Jan 2008

20th October 2007

21st September 2007

16th July 2007

Term	AER	Gross pa	Net pa
3 months	6.95%	6.78%	5.42%
6 months	6.35%	6.25%	5.00%
9 months	6.35%	6.30%	5.04%
1 year	6.35%	6.35%	5.08%
2 years	6.35%	6.35%	5.08%

Term	AER	Gross pa	Net pa
3 months	6.88%	6.71%	5.37%
6 months	6.40%	6.30%	5.04%
9 months	6.45%	6.40%	5.12%
1 year	6.50%	6.50%	5.20%
2 years	6.50%	6.50%	5.20%

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%

The short-term 6.78% fix represents an excellent 3 months rate.

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.

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