Beat the savings slump with these top accounts

Start 2010 on the right financial foot with one of these market-leading savings accounts.

2009 was a pretty awful year for savers. Rates fell to record lows, and only longer-term, fixed rate savings bonds experienced overall rate rises over the course of the year.

Despite all that, there are still some decent accounts out there - and it's well worth your while tracking them down.

The savings year that was 2009

Savers who were willing and able to lock their money away benefited from banks' increased determination to get long-term deposits into their coffers. Everyone else, however, watched as the interest they were earning began to dry up.

Here's some data - taken from Moneyfacts' recent 'The year that was 2009' report - to show you what I mean:

Correct as of 16th December 2009

Don't bank on the Base Rate

Unfortunately, 2010 doesn't hold great promise for savers at the moment, either. The Bank of England is widely expected to keep the low Base Rate on hold for a large part of 2010. That means savers shouldn't bank on seeing significant rate rises in the next twelve months.

That said, rising inflation may push the Monetary Policy Committee to up the Base Rate sooner than expected. Unfortunately, it's impossible to predict all this with any degree of certainty.

The best of the bunch

This slightly gloomy analysis shouldn't stop you acting now - January is an excellent month to make a new savings start.

I'm going to highlight my top account picks, so you can beat the saving slump and wring as much interest as possible out of your cash!

Easy access

If you're looking for a truly flexible, easy access account, my top pick is the AA's Internet Extra account. It pays a market-leading rate of 3.15% AER; and although this rate is variable, it includes a 2.65% fixed bonus for the first 12 months.

This fixed bonus offers some peace of mind, as it is effectively a floor below which your rate is guaranteed not to sink in the first year. The account can be started with as little as £1, and you're allowed to make as many withdrawals as you like with no delays or financial penalties.

Just remember that the account can only be operated online.

Regular savings

People with dependent children up to 16 years of age (or up to 18 in full-time education) should have a look at the Family Regular Saver account from Norwich & Peterborough Building Society.

This account pays a very juicy, fixed rate of 5% AER for the first year. Just be aware that 3% of this is a bonus rate, dependent on you saving every month and not making more than one withdrawal during the year.

You can save between £1 and £250 per month, and the account can be operated in-branch, by post or online.

If you don't have children, take a look at the Regular Saver Bond (Issue 9) from Principality Building Society. It pays a fixed 4.5% AER for 12 months, and allows you to save between £20 and £500 per month.

Bear in mind, however, that this is not a flexible account: Miss a payment or make a withdrawal and your rate will drop to a measly 0.1% for the whole year. The other drawback is that the account can only be operated by post or in-branch.

Bonds

As I've said, the economic conditions for 2010 are almost impossible to predict. Personally, I'd be unwilling to commit to any long term, fixed-rate bonds at present, in case interest rates do take a turn for the better and I miss out as a result.

(Of course, I could be wrong - my fellow lovemoney.com writer Neil Faulkner takes a different perspective on things in this article).

For the short term, my pick is the 12 Month Fixed Account from Punjab National Bank. This is essentially a one year, fixed rate bond, which paying a new market-leading rate of 4% AER.

You must invest at least £1,000, no withdrawals are permitted during the term, and the bond can only be operated online.

The good news is that although it may not be a household name, the international arm of Punjab National Bank is covered by the normal, £50,000 FSCS compensation scheme.

Happy saving!

Get help from lovemoney.com

If you need a bit of help getting into the savings habit, you've come to the right place..

First, adopt this goal: Build up your savings

Next, watch this video: Make 2010 the year to save

And finally, why not have a wander over to Q&A and ask other lovemoney.com members for hints and tips about what worked best for them?

More: Beware of these 5 terrible savings traps! | Get into the savings habit in 2010