Over the last few weeks we have seen signs that UK savings rates are starting to edge forward although the fine print of many of these "attractive" offers can be very different to the initial impression. The vast majority of these savings schemes, which offer upwards of 4% interest, require investors to lock in their savings for a number of years in order to access what are significantly higher savings rates compared to UK base rates.

The truth is that those operating these particular savings schemes believe that UK base rates will move higher than their guaranteed savings rates before the end of their term and consequently they could end up borrowing money on the "cheap". However this is something of a risk and a gamble on behalf of the banks and many savers are being tempted to put their money aside for anything up to three or four years to gain these significantly improved savings rates.

While it is impossible to suggest what may or may not happen in the future it is for many people a case of considering their income requirements now and their current savings rates with instant access accounts. It is something of a complicated situation and those looking to make any significant changes should consult their financial advisers as soon as possible.

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