Spotlight: Cahoot two-year bond

Those depressed by miserable savings rates may jump at the chance to save with Cahoot's two-year fixed-rate bond, offering 4.01 per cent. The rate is very competitive, almost matching ICICI's market-leading offer at 4.18 per cent, and easily blowing the average instant savings account rate of 0.63 per cent out of the water. Plus it's a relatively short-term fix, and Cahoot is part of Santander, one of the largest banks in the world.

It sounds great – until you see that the minimum investment is £30,000. For those of us who don't have that much lying around, there are competitive deals out there that equal or better the Cahoot rate. For the same fixed term, ICICI's HiSave fixed-rate account pays 4.10 per cent a year for a minimum investment of £1,000. Or, for just £1, Nationwide offers a rate of 3.09 per cent for two years.

And if you can't lock your cash away that long, there are some comparable deals for a £500 minimum investment with the AA, believe it or not, at 3.75 per cent for one year.