© The Ulster Herald - News Stories

For all the negative press screaming pessimistic headlines about Britain's personal debt crisis there is an upside as much as Brits are apparently busy accumulating frightening levels of debt we're also surprisingly prudent when it comes to savings.

In fact according to a recent report by Alliance & Leicester Savings Brits are currently saving £867 billion with forecasts suggesting that at if the current growth rate is maintained we could hit the £1trillion mark by 2010. Whilst personal debt is currently around £1.36trillion its worth taking into consideration that 85% of this debt is in mortgages. In fact our savings amount is four times more than our collective credit card debt, which certainly puts a more positive spin on the UK's personal debt crisis'.

So, if you don't already have a savings account, perhaps now is the time to jump on board, the incentives are obvious long term financial security and extra funds to draw on should you need them. It really is worth giving some consideration to what sort of savings account would work best for you however, there's plenty to choose from and inevitably some represent far better deals than others.

The A&L report found that the most common savings accounts were instant access, not really surprising the convenience of being able to access your cash whenever you need it makes such accounts a good option for many, especially now that these days they often offer pretty competitive interest rates alongside that convenience.

When you're looking for a competitive savings account its worth keeping in mind that when launching a new account banks will often pitch in with a particularly impressive rate to attract an initial burst of custom, chances are however that these rates will gradually become significantly less impressive as time goes by. It's a good idea to monitor the market and try to maintain some idea of how well your account is performing in the market.

For reliable long term rates you might consider an account that guarantees an interest rate that maintains its competitiveness relative to the Bank of England's base rate. There are an increasing number of accounts that promise to remain at least, say, half a percent above the base rate for a set amount of time.

Another thing to look out for with instant access savings accounts is what are sometimes called disciplined' accounts, these provide a disincentive' to withdraw cash by paying no interest in a month in which you make a withdrawal. If you feel this could be a useful way of controlling your finances I suppose it might make sense but personally I can't see the appeal of an account that punishes you for even a small withdrawal, surely it's preferable to have an account that works hard for your savings regardless?

There are savings accounts, the Premier regular Savings account form A&L for instance, that offer particularly attractive rates, 12% in this case, but only if you open a current account with the same bank Still, a good deal if accompanying current accounts is also competitive.

Overall the best tip for finding a good deal on a savings account, as with any financial product, is to make sure you put in a bit of research. Far too many people are content to open an account with the same institution that they already bank with, in many cases this will mean they end up with a less than competitive rate. Here's a comparison table to get you started; keep in mind that the AER rate is generally a better long term indicator of interest rates.

Provider	Account	AER / Gross	Interest paid
Citibank	Flexible Saver	6.1% / 6.27%	Monthly
Abbey	Esavers Account	6.30% / 6.30%	Yearly
Alliance & Leicester	Savings	6.30% / 6.13%	Monthly
ICICI Bank	HiSAVE Savings Account	6.41% / 6.23%	Monthly