Interest rates on savings accounts in the UK just keep falling. A few month ago it was possible to get a semi-decent rate of 3.2%, including a 12 month bonus, in an instant access Santander eSaver account. Now that’s tumbled to 1.5%, yet UK base rates have remained constant. I’m keeping my cash in the Santander eSaver for the moment, as I’m still getting the 3.2%.

Whenever I see a savings account offering a reasonable rate, I open an account so that I have a new home ready for when either the 12 month bonus expires or the variable rate of interest is cut. At present, my back up savings account is a Halifax Reward Saver, which I opened at the end of August 2012. It’s currently paying me 2.5% (this has dropped to 1.7% for new account holders). This account permits up to 4 withdrawals a year and is only available to Halifax Reward Current Account holders.

I had a look around at the highest rates available in an online instant access savings account. On 4 December 2012 that was the 2.35% paid on the Marks and Spencer Everyday Savings Account. You can open this account with only £1 and make unlimited withdrawals.

It’s utterly depressing when inflation (supposedly) stands at 2.7%,  that you can’t even match that (before tax) in an easy access savings account.

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