Experts warn that the days of 7% plus interest rates on fixed accounts are over, but there are still products out there for people prepared to act quickly.

After months of attractive fixed-rate bonds, the tide may suddenly be turning.

Birmingham Midshires and Bank of Cyprus have both pulled their one-year fixed rate bonds, which both boasted interest rates of over 7% AER.

Experts say the days of such competitive deals could be over.

Kevin Mountford, head of savings at moneysupermarket.com, says: "It had to happen sooner or later and it looks like things may have gone ‘pop' for fixed rate bonds. After months of providers outbidding each other to top the table, the top two, Birmingham Midshires and Bank of Cyprus, have withdrawn from the game by pulling their best rates, which is bitterly disappointing for savers."

One reason for the rates being pulled could be the falling cost of wholesale funding. Banks have been offering generous rates on savings in order to bring in customers - and their money - but the falling cost of funding from other banks has eased pressure on their margins and made it harder to them to maintain such high rates.

"Birmingham Midshires and Bank of Cyprus are unlikely to be the only providers that decide enough is enough, and I fear that the days of 7% plus fixed rate bonds could be numbered," adds Mountford.

Fixed rates

In light of this, those looking to secure a good fixed rate account should act now.

SAGA currently comes out top of the fixed-rate savings league, offering on online account paying 7.12% AER for one-year. You only need £1 to open this account but you'll need to be aged over 50 to qualify.

For younger savers, FirstSave offers a one-year fixed account at 7.1% AER - you'll need a deposit of £1,000 upfront though. Icesave has a one-year account at 7.06% but again you'll need £1,000 upfront.

Both Birmingham Midshires and Anglo Irish Bank have one-year bonds paying 7.05% AER, with the former accepting deposits of £1 and the latter deposits of £500.

Finally, the Post Office has a one-year bond also at 7.05% on deposits of £500.

If you are happy to fix for longer, then West Bromwich offers an online account paying 7.12% until 31 June 2010 on deposits from £1,000 while Icesave pays 7.06% for either two years or three years, on deposts from £1,000.

FirstSave also offers a two-year or a three-year account, both paying 7.1% on £10,000 deposits.

If you are after a fixed rate account, you might want to consider ICICI Bank's HISAVE Term Deposit account, which pays 7% AER for one-year or 6.7% AER for six-months. But you'll need to have an ICICI HISAVE savings account to qualify for this deal.

Instant access accounts

If you want instant access and to manage your money online, then Birmingham Midshires pays 6.52% AER on deposits of £1. The account offers 24/7 access and you can make unlimited withdrawals or deposits with no loss of interest.

Or Bradford & Bingley pays 6.51% AER on deposits from £1, Kaupthing Edge pays 6.5% AER on deposits from £100 and Intelligent Finance's isaver account pays 6.4% AER on deposits from £1.

Finally, Icesave pays 6.3% on deposits of £250, the AA pays 6.46% on £1 deposits and ICICI Bank’s HISAVE Saving account pays 6.17% on deposits from £1.

Accounts for children

If you have decided to invest your Child Trust Fund (CTF) voucher into a cash savings account, then the Hanley Economic Building Society currently offers an account paying 7.75% AER which allows you to make additions from £1.

Elsewhere, Britannia pays 7% AER on its CTF, but this rate includes a 1.25% bonus for 24 months. Again, the minimum addition is £1.

Or Chorley & District pays 6.75% AER with no minimum addition.

If you have already invested your voucher but want to open up a savings account for your child, then Halifax's one-year Regular Saver account pays an impressive 10% AER on deposits from £10.

This rate really does outshine the rest of the children accounts on the high street, but another notable account is Chorley & District Building Society's Foxley Fund which pays 6.75% AER until the child turns 18 on deposits from £1.

Or Yorkshire Building Society's Treasure Bond pays 6.29% AER until 30 June 2009 on deposits from £100.

If you need instant access then you could consider the Save4it account from Halifax which pays 5.55% on deposits from £1.

Best of the rest

The credit crunch has not only highlighted the importance of saving,
it has also created a financial climate where saving products offer
better value than in recent years.

Anyone looking to start a regular savings habit should consider a limited addition account from Halifax. Its 10% regular savings account
is only around until the 20 July, but offers excellent potential to
people able to deposit between £25 and £500 a month. The drawback is
you won't be able to deposit more than £500 a month, and no withdrawals
are allowed for the life of the account (12 months).

And, be
aware that in order to open this account you will need to also open a
nominated savings account with Halifax, where the money will be
transferred once the 12-months are up.

Another good rate is from Darlington Building Society, which pays 8% AER on monthly deposits between £50 and £250.

Elsewhere, Barclays pays
7.75% AER on its regular savings account, while monthly deposits
allowed between £20 and £250. Or Abbey has a fixed-rate regular savings
account paying 7.23% AER for monthly deposits of between £20 and £250,
while Principality pays 7% AER on monthly deposits between £20 and
£500.

If you only want to put aside £10 a month, then Skipton pays 6.8% AER.

If you are looking for an over 50s account, then Heritable Bank has just launched a no-notice account paying 6.31% on a minimum deposit of £1,000.

Less to save? SAGA offers an instant access online tracker account paying 6.26% AER on a minimum deposit of £1.

Coventry pays 6.2%, including a bonus rate of 0.6% for 12 months. You will need to have £10,000 to put down though and the account requires 60 days notice for access.

Finally, tax-free products from National Savings & Investments (NS&I) currently include a Direct ISA paying 5.3% AER on deposits from £1,000, and a cash ISA paying 4.6% AER on deposits from £10. Although these aren't the most competitive ISA rates, if you want to protect 100% of your money (for example, because you have more than £35,000 from previous ISAs) then all NS&I products are guarenteed by the government.

It also currently offers a two-year savings account priced a 3.44% AER on deposits from £100 or a five-year account priced at 3.28% also on deposits from £100.

• savings
• Child Trust Funds

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