SAVERS SHOULD TAKE ADVANTAGE OF SHORT-TERM BONUSES

Unless you are prepared to switch your account on a regular basis, you need to look for a provider that offers consistently good rates.

Many providers are using short-term bonuses to lure you in, but their standard rates may be less impressive once the bonus period comes to an end.

"To get the best return from easy-access savings accounts, take advantage of introductory bonuses and guaranteed minimum rates, " says David Black from financial analyst Defaqto. "But move your funds when the introductory bonus or guarantee ends."

Currently, some of the highest rates are offered on fixed-rate bonds.

Aldemore, for example, is paying 3.05 per cent on a one-year bond on a minimum of £1,000, while Northern Rock and Barnsley Building Society are both paying 3 per cent on minimum deposits of £1 and £100 respectively.

ICICI bank is paying 4.15 per cent on a three-year bond on a minimum of £1,000, and the AA is paying 4.1 per cent on a three-year bond from on a minimum of just £1.

If you're happy to lock your money away for five years, ICICI is paying 5 per cent on a minimum investment of £1,000.

"Only invest funds that you won't need for the duration of the fixed-rate period. Early withdrawals tend to be very expensive or not permitted, " says Black.

Black also advises that you keep a close eye on the rate you're getting in an individual savings account (Isa).



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"You need to be on your toes with cash Isas and be prepared to transfer to another one if your current deal becomes uncompetitive, " he says.

"But bear in mind that not all cash Isas permit transfers in from other providers."

At present, Nationwide Building Society is paying 2.75 per cent on a minimum of £1 on its Isa which does permit transfers in.

Newcastle Building Society is also paying 2.75 per cent on its Isa which allows transfers in, but this account requires 120 days' notice before you can get access to your cash, and there is a higher minimum deposit of £500.

FTSE 100 breaks out of a losing streak on hopes of strong American jobs data

BRITAIN’S top shares snapped out of a three-session losing streak yesterday as hopes of strong jobs data from the US spurred sentiment, sending investors bargain hunting in commodity-linked stocks and banks.

The FTSE 100 ended up 59.86 points, or 1.2 per cent, at 5,211.18, closing at a two-week high but falling back from an intra-day high of 5,262.50.

US President Barack Obama said on Wednesday he believed that the May employment report, due on Friday, would show strong growth in US payrolls.

Weekly US jobs data out yesterday appeared to back up Obama’s upbeat comment.

The number of US workers filing new claims for jobless benefits fell last week, while private employers added jobs in May, further evidence the labour market was improving.

However, a slowdown in new orders received by US factories from March’s surprisingly robust gain convinced investors to lock in some early profits.

“It’s a very volatile situation we are in at the moment and when you have a market which is not unfairly valued and selling off, it tends to attract investors back in,” Peter Dixon, economist at Commerzbank said.

The upbeat sentiment drew punters in off the sidelines, attracting them to stocks which have been hit over the past few days.

Energy stocks were top performers. BP rose 0.5 per cent but fell away from session highs as the oil major’s Gulf of Mexico oil disaster weighed on the stock’s sentiment.

Crude added 0.7 per cent, while BG Group and Royal Dutch Shell gained 1.6 and 1.5 per cent respectively. Oil services firm Petrofac was the top riser, up 5.2 per cent.