Savings

More than £1.5 billion worth of Premium Bonds were bought in April as savings rates started to tumble, according to new analysis from MoneySavingExpert.com. But are they now top of the tree for savings, or can you beat the returns you'd get elsewhere?

Update Fri 15 May: Since this story was first published, savings rates have shifted again. For the current top rates, see our Top Savings Accounts guide. Savings providers Marcus and Saga have today cut interest rates on their easy-access accounts for the second time in a month – and some existing customers should now consider switching.

The two top-paying easy-access savings providers Marcus and Saga cut the interest they pay new customers to 1.2% last Friday, and existing customers will also see rates drop. But after rival bank Aldermore also cut its rates over the weekend, Marcus and Saga remain the best buys.

Savers have been dealt another blow after the interest rates of the two top-paying easy-access accounts were today cut to 1.3% – and existing customers will also be affected in the next few weeks. 

Premium Bond holders will have a lower chance of winning a prize from May, while those with NS&I savings products will see their interest rates cut.

A number of major banks including HSBC, First Direct and Tesco have already raised mortgage rates after yesterday's base rate rise but have kept quiet on whether to pass on the increase for savers, MoneySavingExpert.com has found.

Banks may be told to introduce a single interest rate for all savers who've had their accounts for more than 12 months - meaning long-term savers could be given better rates, but shorter-term customers may lose out.

The Bank of England has today decided keep the base rate at 0.5%.