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months of providers outbidding each other to top the table, the top two, Birmingham Midshires and Bank of Cyprus, have withdrawn from the game by pulling their best rates, which is bitterly disappointing for savers."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.

ICICI HiSAVE has increased the AER on its one-year fixed-rate account to 7.2% AER for deposits from £1,000. This account is available to both new and existing HiSAVE customers.

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.

If you have a bit less to save, then both Anglo Irish Bank and the Post Office offer one-year bonds paying 7.05% AER on deposits of £500.

Or Cahoot pays 7.02% until 16 July 2009 on deposits from £1,000.

If you have less to save, then Birmingham Midshires has a one-year online account paying 6.52% for people with just £1 to put away.

Rates on longer term fixed interest accounts are also just over the 7% mark, so if you are happy to put your money away for longer then these might be a good bet. FirstSave offers two accounts, fixed for either two years or three years, both paying 7.10% AER on deposits of £1,000 plus.

Or Icesave pays 7.06% for either two years or three years, on deposts from £1,000.

Instant access accounts

If you want instant access and to manage your money online, then the good news is that instant access rates appear to be getting more competitive.

Kaupthing Edge recently increased its AER from 6.5% to 6.55% on deposits from £100.

Kevin Mountford, head of savings at moneysupermarket.com, says the easy access accounts are back in the spotlight as fixed rates become less competitive.

He adds: "Once again, we see a foreign bank flexing its muscles in the savings arena. Kaupthing Edge has consistently had a strong customer price proposition internationally, which it is living up to in the UK.

"Easy access accounts are back in the spotlight due to a reduction in swap rates, making it more difficult for providers to offer improved rates on fixed rate bonds. At 6.55% Kaupthing's easy access account raises the bar and clearly demonstrates the desire by foreign banks to maintain their status as the best-buy providers."

Elsewhere, 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 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 6.3% AER until 30 July 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 can benefit from some good rates at the moment.

Darlington Building Society pays 8% AER on monthly deposits between £50 and £250, while Barclays pays 7.75% AER on monthly deposits 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 United Trust Bank has launched a 50-days notice account paying 6.35% AER for deposits from £500.

Or Heritable Bank offers 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 at 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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