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When the Bank of England recently cut interest rates by half a point, it should have spelled good news for borrowers but bad news for savers.
However, these are no ordinary times and savers continue to benefit from great rates, while life remains tough for those with a mortgage.
Despite the interest rate cut, several providers have actually bucked the trend and increased their rates - a clear indication of how competitive the savings market remains.
Egg increased the rate on its Egg Savings Account by 0.25 percentage points to 6.55%, while Alliance & Leicester (A&L) bumped up the interest rate on its Online Tracker to 6.30% with the guarantee that it will at least track Bank rate until January 31, 2011.
However, both deals come with a catch - the rate includes a 12-month introductory bonus and therefore becomes much less competitive after the first year.
What you see isn't what you will always get
Bonuses are nothing new in the savings market - providers often use them to get deals into the best buy tables and attract new customers - but the size of the bonus seems to be increasing.
This time last year, the biggest bonus was 1.2 percentage points, but Natwest's e-Savings account includes a 2.20 point bonus.
Egg's rate of 6.55% is also made up of a large bonus - the rate is boosted by 1.8 percentage points for 12 months. Once the bonus period ends, the rate drops to a much less attractive 4.75%.
A&L has restructured its Online Tracker adding a bonus and a rate guarantee. Previously it paid 4.25% or 4.75% depending on the balance. The headline rate is now 6.30%, although this includes a 1.3 point bonus which runs until January 4 2010. The 'go-to' rate is currently 5%.
The Abbey eSaver Direct at 6.50% includes a 0.75% bonus, meaning it drops back to 5.75% after 12 months. Also, while unlimited withdrawals are permitted, you earn a lower rate of interest in months when a withdrawal is made. Tesco Personal Finance has recently launched e new savings account.
Its Internet Saver includes a large 1.50% first year bonus which means its 6.50% rate will fall back to just 5.0%; the Capital One Savings Account also has a 1.0% bonus on its 6.50% rate, which falls to 5.50% after a year.
Bonus rates themselves aren't necessarily a problem, but they are something to watch out for. If you opt for an account with a bonus, you should therefore be prepared to move your money once the introductory period ends.
What if you don't want to move your money around?
If you don't want the hassle of moving your money to another account at the end of the bonus period, but still want to capitalise on market-leading rates, there are still plenty of options available.
For example, the A&L eSaver Issue 2 offers a market-leading easy access rate of 6.60% and a guarantee to be at least 0.50% above Bank rate until February 28, 2010.
However, this is not an ideal account for those who want regular access to their cash because, despite allowing unlimited withdrawals, no interest is paid during any month in which a withdrawal is made with the exception of July.
So customers who dip in and out of their account will earn a rate that is significantly lower than the advertised annual rate of 6.60%.
Similarly, the West Bromwich Stratus Account, which pays 6.56%, only permits six withdrawals a year without notice or penalty.
For an account without a bonus rate or withdrawal restrictions, the leader of the pack is the Birmingham Midshires e-Saver Account Issue 2, with a rate of 6.52%. It is closely followed by the Bradford & Bingley Internet Saver 3 with a rate of 6.51% and no bonus or withdrawal penalties.
However, bear in mind that these rates haven't yet changed since the half point cut in Bank rate so they may well fall over the coming weeks.
If you want to protect your savings rates from interest rate cuts, consider a fixed rate deal. ICICI Bank has the leading one-year rate at 7.20%. Alternatively, Anglo-Irish Bank's One Year Fixed Rate Bond is paying 7.05%, while Halifax's Websaver, which is also a one year deal, has a rate of 7.00%. Anglo-Irish also has a nine-month bond at 7.06%.
One drawback of fixed rate bonds is that you cannot usually access your money during the fixed rate term, so they are only suitable if you have money you can afford to lock away. However, Coventry Building Society is offering an interesting hybrid - its 50 Plus eSave has a fixed rate of 6.25%, but it is an easy access account which permits unlimited withdrawals.
This is a highly attractive proposition in the current interest rate environment, although there is one major restriction - this account is only available to the over 50s.
Will your money be safe too?
While rates are competitive at the moment, it is expected that most providers will pass on the half-point interest rate cut to most of their accounts in the coming weeks - and indeed some have already made moves, with Firstsave reducing its rates by 1.25 percentage points, ING Direct by 0.5 points, United Trust Bank by 0.25 points and Lloyds TSB also altered the rates on some of its deals by 0.5 percentage points.
However, perhaps the most notable rate reductions have come from the 'safe havens' for cash - National Savings and Investments (NS&I) and Northern Rock. Under the terms of the Financial Services Compensation Scheme (FSCS), only the first £50,000 of savings held with a single institution is totally protected, but because NS&I and Northern Rock are government-owned savers receive total protection, regardless of the amount held in the account.
That said, the recent rate cuts mean this extra protection comes at a cost. Northern Rock has reduced rates by up to 0.51 percentage points and NS&I has changed some of its rates by as much as 0.85 points and their accounts are not looking competitive.
NS&I's easy access account for example, pays just 4.2% on its easy access savings account - and that's on balances of £50,000 or more. This is pretty poor given the number of accounts paying more than 6% on balances of as little as £1, and it is set to get even less competitive as the rate will drop to 3.70% from October 22.
What it more, there is no need to lose out in this way. The FSCS protects up to £50,000 held with a single institution but this doesn't mean that those with more than that in savings need to put their money at risk. All you need to do is spread your money around between different providers.
