This week's best savings rates

Interest rates remain at just 0.5%, and the Bank of England looks unlikely to start increasing this official rate of interest until the outlook for inflation is clearer.

If you've seen your interest rate drop over the past few months then it really is time to find a new home for your money. The good news is that are some decent rates out there - especially with the continuing base rate holds prompting a rally on fixed-rate deals.

If your money is stuck in a low-paying account, now really is the time to find it a new home.

Instant access

If locking away your money isn't for you, then a no-notice deal might be more suitable for you. Just remember, the interest rate on these accounts is variable so it could decrease down the line.

West Bromwich Building Society pays 3.38% AER on its branch account, including a 0.6% bonus until 31 October 2010. However, while access is instant, you can only make two penalty-free withdrawals a year.

Citibank's Flexible Saver account pays 3.3% AER, and allows you to save between £1 and £1 million. There are no restrictions on the number of withdrawals you are permitted to make.

Bear in mind, though, that this rate includes a bonus of 2.25% for 12 months, so after one year it's probably worth finding a new home for your cash.

Birmingham Midshires offers a telephone-only savings account paying 3.15% on deposits from £1. This deal allows unlimited and penalty-free withdrawals, but access is restricted to telephone banking. The rate also includes a bonus of 2.65% for the first 12 months, meaning after one year your returns are likely to drop significantly.

ING Direct now pays 3.2% AER on its varialble rate savings account. You can open this deal from as little as £1, and there are no penalties or restrictions when it comes to accessing your money.

This deal is only for new customers - bear in mind, that interest is paid monthly so you won't benefit from compounded interest. After one year, the rate will fall to just 0.5%.

Sainsbury's Bank has an internet savings account that also pays 3.2% AER on deposits between £1,000 and £500,000. However, you are only allowed to make three withdrawals during the first 12 months, and after this time the rate will drop to just 0.75%.

Scottish Widows Bank recently launched a new internet savings account paying 3.01% including a 1% bonus for the first 12 months. You can open this account with a deposit of £1, and withdrawals are allowed without notice or penalty.

Elsewhere, Alliance & Leicester has an online deal paying 3%, including a bonus of up to 1.5% for the first 12 months. There are no withdrawal restrictions and you can save between £1 and £2 million in this account, although you must deposit at least £1,000 when you open the account.

Notice accounts

If you want to make withdrawals but are happy to give your bank or building society notice before you do, then you could get a better rate.

Investec Bank pays 3.36% on its High 5 notice account, which requires a minimum balance of £25,000 and a three-month notice term.

Firstsave's 90-day notice account requires a  £100 deposit and pays 3.25% AER.

Chelsea Building Society pays 3.1% AER on its 120 day notice account, which can be opened from as little as £1.

All the above rates are variable.

Fixed rate

1. Long term (five-year terms plus)

Yorkshire Building Society currently pays 5.3% AER on deposits from £100 for five years.

Elsewhere, Halifax pays 5.25% AER on its five-year websaver fixed bond. You'll need to deposit £500 or more to qualify, and withdrawals are not allowed.

Skipton Building Society also pays 5.25% AER until 30 November 2014, on deposits from £500.

2. Medium term (three and four-year terms)

You don't have to fix for five years to get a rate of 5% plus, although generally speaking the shorter the term, the lower the interest rate you'll receive.

Barnsley Building Society pays 5% AER over four years if you deposit at least £100 in its online bond, or 4.8% over three year

ICICI Bank pays 4.7% AER on its three-year deal on £1,000 deposits and Yorkshire Building Society pays 4.65% on £100-plus deposits for three years.

Hinckley & Rugby Building Society pays 4.65% on its three-year fixed-rate postal bond - just be aware that this account requires a minimum deposit of £25,000.

Halifax pays 4.55% on its four-year websaver deal on deposits from £500.

Elsewhere, Birmingham Midshires also pays 4.65% over three years on deposits from £500

3. Short term (one to two-year terms)

The AA pays 4.35% on its online two-year fixed-rate account. Or Kent Reliance, ICICI Bank and Birmingham Midshires all pay 4.25% for two years.

Saga, meanwhile, also pays 4.25% AER over two years on deposits from £1.

Barnsley Building Society pays 4% over two years or 3.1% for one year, on a deposits from £100. Santander (Abbey, Bradford & Bingley and Alliance & Leicester) meanwhile pays 4% over two years but only on deposits of £10,000 plus.

However, National Savings & Investments currently tops the best-buy tables with a new account paying 3.95% AER for one year. Other one-year accounts, includes a deal from Halifax that pays 3.5% AER for one year, or 2.75% over nine months, on deposits from £500.

Finally, if you like a good cause as well as a good rate, Coventry Building Society has relaunched its Poppy Bond. It pays 4.3% until 31 December 2011, on deposits from £500, and the society will make a donation equivalent to 0.2% of the total balance to the Royal British Legion 2009 Poppy Appeal.

Regular savings

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.

Abbey offers a fixed-rate of 6% AER on its monthly saver account, but only to customers who switch to its current account. You'll receive this rate for 13 months, but you must pay in between £20 and £250 each month.

Norwich & Peterborough Building Society pays 5% AER on monthly deposits between £1 and £250, while Principality pays 4.5% on deposits between £20 and £500.

Barclay's monthly saver, meanwhile, pays 4.25% AER on balances from £1. You need to pay in between £20 and £250 a month to qualify for this fixed rate, and withdrawals are not allowed. If you do, however, dip into your savings, the interest rate will drop to 3.03%.

Children's savings accounts

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 5% AER which allows you to make additions from £1.

However, as this account can only be managed via a branch, you might be better off with Yorkshire Building Society's offering. This pays 3% AER, but includes a bonus of 0.7% for 12 months.

The above rates are variable and could change.

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 6% AER for one-year on deposits from £10.