July brings rising rates for Savings Accounts

The first day of July has brought more than rising temperatures for the UK, as several savings account providers have increased interest rates on savings accounts.

ING Direct has increased rates on its savings account from 2.75% to 3%. The ING Direct savings account can be opened with as little as £1 and up to £1 million, providing savers with instant access to funds with no withdrawal fees and interest paid on a monthly basis.

Another financial services provider to increase its rates is Sainsbury's, after upping rates on its internet saver account from 2.60% to 2.80%. The minimum opening balance has also increased from £1 to £1,000 up to a maximum of $500,000, with instant access to your funds, no withdrawal penalties and interest paid annually. The rate offered is variable, which means is can change, but Sainsbury's Finance guarantees the rate will remain at least 2% above the Bank of England base rate for 12 months after opening the account.

And finally, Egg also increased its saving rates yesterday from 2.5% to 2.8%. You can open an Egg savings account with as little as £1, earning this great rate on funds of up to £100,000. This account offers instant access, no withdrawal fees and interest paid on a yearly basis.

Like most savings accounts offering competitive rates, these products come with a 12 month bonus, so the rate will fall after this period. However, there is nothing stopping you from comparing account after this time then switching to another account offering better returns.

Written by Sam Gooch