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The Bank of England's decision to keep interest rates on hold is unlikely to be met with much cheer among those who are trying to put money aside during this difficult period.

With the Bank's monetary policy committee (MPC) voting today (July 9th) to keep rates on hold at 0.5 per cent for the fourth month in a row, the situation for savers remains decidedly bleak.

Looking for the best of a bad bunch

Although many mortgage customers have watched from the sidelines with glee as interest rates have tumbled since the beginning of the economic crisis last year, savers have been forced to watch the rate of return offered on savings accounts tumble.

Indeed, many customers have found themselves stuck with accounts matching the base rate and offering returns of 0.5 per cent over a year. And with the MPC deciding to keep rates at their lowest level in the institution's 315-year history for at least another month, many people may decide that now is the time to switch.

For those that do decide to look for a new account, it is important to assess how much you can put in to activate the account, as well as how long you can afford to keep your hands off the money.

If you have £500 to start and can do lock your savings away for a year, the Halifax Fixed Web Saver will offer a return of three per cent at the end of the period.

Meanwhile, if you can afford to wave goodbye to your savings for five years, the savings account will offer a market leading 4.75 per cent return.

A full list of the current leading interest rates from major high street providers can be found at the page.

What about bonds?

For those who are happy to keep their money locked up for a period of six months or more, bonds may be an attractive option.

Like many savings accounts, the investment vehicle will offer a greater rate of return the longer you can keep cash stowed away, with the Nationwide e-Bond offering an annual equivalent rate of 4.75 per cent for a five-year bond.

The minimum investment period for the Nationwide bond is six months, with interest rates starting at 2.36 per cent.

Birmingham Midshires also offers a two-year fixed-rate bond with a headline rate of 4.75 per cent, but this is only accessible to savers who have £10,000 or more to activate the account.

Whichever option you choose, it may be worth acting on your decision quickly, as all rates and accounts offered are subject to change and may be amended or withdrawn from the market at any point if they are becoming oversubscribed.

Doing so may be particularly important in the current climate as despite the low rate of return on many accounts, there is evidence to suggest that Britons are waking up to the importance of saving.

An emerging nation of savers

According to research carried out by National Savings & Investments (NS&I), there was a notable increase in the amount of money people are putting aside each month in spring this year, with the average being saved now standing at £92.41, up from £90.12 in winter 2008.

The poll also revealed a steady increase in the amount that Britons would like to be able to put away, with people wanting to put away £219.11 each month on average, up from £195.67 this time last year.

However, the NS&I pointed out that while our attitudes towards saving are becoming more positive, many people are still struggling to achieve their targets.

Dax Harkins, senior savings strategist at NS&I, commented: "Many of us are cutting back on unnecessary spending and instead are putting a priority on saving, as saving for an emergency continues to be the number one reason for putting money aside.

Our survey shows people are setting themselves their highest ever savings targets. However as we've seen previously we are still falling a long way short of our aspirations," he added.

Mr Harkins advised that one effective way of keeping to a target could be to set specific saving goals to work towards to bring home the realities of the benefits of saving on a regular basis.

Putting enough away to go on a dream holiday may be one way of doing this, while for first-time buyers, the prospect of building a deposit for a new property may be a great incentive to put money aside.

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