Barclays is the first major bank to launch a competitive savings account, paying 1.81% fixed for three years

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Barclays is the first major bank to launch a competitive savings account since the Government ended its cheap source of money for lenders in January

It is the first sign that competition for our money might be increasing — which should push up interest rates.

Barclays’ new three-year Flexible Bond pays a fixed-rate of 1.81 per cent. It is available in branches and online, and you can take up to 10 per cent of your money out each year fee-free.

Barclays’ new three-year Flexible Bond pays a fixed-rate of 1.81 per cent. It is available in branches and online, and you can take up to 10 per cent of your money out each year fee-free

The deal is not the top rate on offer, but in the High Street it is only beaten by newcomer Metro Bank’s 2 per cent deal. Online bank RCI pays 2.31 per cent.

Big banks all but abandoned savers when the Bank of England launched a scheme that lent them money at rock-bottom rates.

The scheme — Funding For Lending — closed this year, so banks must now look to money markets or savers to attract new money.

Some economists predict that we could see as many as three rises this year, pushing the base rate from 0.5 per cent to 1.25 per cent.

Experts advise against tying your money up for more than two years so you don’t miss out on rising rates.

The top one-year rates in the High Street come from Kent Reliance and Metro Bank, both at 1.65 per cent.