If you have any savings in the bank or building society generally the best type of savings account is an ISA as it is tax free and normally has quite a competitive interest rate. But what if you have already invested your £3,600 ISA allowance for this tax year - well there are a number of easy access savings accounts paying decent rates of interest thanks to the credit crunch which has made it more important for banks to bring in more savings.Kaupthing Edge, an online branch of Iceland's largest bank is currently paying 6.5% on £1,000 invested in its Instant Access Account. Whilst this rate gives the best ISA accounts a run for their money it is bearing in mind that once tax is deducted the rate falls to 5.2% which is still a very good rate.
If you have less than £1,000 to save then ICICI Bank UK, a subsidiary of the Indian bank ICICI offers an interest rate of 6.16% and this is guaranteed to match the base rate plus 0.3% until December 2011.
