Top Six Super Savers

As the Northern Rock crisis shakes confidence in banks, savers are turning to building society accounts.

The Building Societies Association (BSA) yesterday reported the strongest ever inflows into building society savings accounts in September. The figures indicate the banks' loss could be the building societies' gain.

Net inflows into building society accounts reached a staggering £2.8 billion in September. This is the highest level ever recorded and more than doubles the figures for August while being almost three times greater than deposits made in September last year.  

Savers are also favouring building societies as a home for their cash ISAs with £68 million deposited in tax-free accounts in September compared with just £57 million at the same point in 2006.  

According to the BSA a significant proportion of the increase is likely to be down to savers closing accounts with Northern Rock and re-depositing their funds in what they consider to be safer havens, that is, accounts offered by building societies.

But will savers have to sacrifice the best returns by turning their backs on the banks? According to Moneyfacts, 54% of their best buy savings accounts are offered by building societies which often provide mid to top market rates while generally steering clear of particularly uncompetitive deals.

But as the tables below demonstrate, if you're after the very best interest rates currently available then you'll need to look to the banks:

Top Six Building Society Savings Accounts

Top Six Bank Savings Accounts

Source: Moneyfacts. Easy access accounts.

The most competitive rate at the moment is offered by Birmingham Midshires and ICICI Bank UK at 6.41% (AER). Here at The Fool we're fans of the ICICI HiSAVE account because of the generous guarantee which is due to be enhanced next year and beyond. Although the best offering from the building societies is not quite as high at 6.20%, both Principality Building Society and Yorkshire Building Society still offer pretty attractive rates.

All of the top six building societies accounts offer rates which comfortably beat the Bank of England base rate, but they do lag behind the best savings deals served up by the banks. However, when it comes to tax-free savings building societies come out on top, taking four of the top six positions. But if security is your top priority, you can't really beat a table-topping instant access ISA from National Savings & Investments.  

Top Six Cash ISA Accounts

Building societies certainly offer us an attractive choice of savings, providing accounts which are competitive even if they aren't necessarily the market leaders. But remember savings rates aren't your only consideration. When you're choosing an account check out any restrictions on access or misleading introductory rate tricks which become decidely middle of the road or worse once the bonus period has ended.

It's a good time for savers. The global credit crunch is allowing us to enjoy some of the highest savings rates we've seen in a good few years. Rates which break through the 6% barrier are now relatively easy to find and this is equally true whether you go for a bank or a building society as a home for your cash.

More: What's A Guarantee Worth? | Make The Most Of Your Savings.