While mortgage customers and other borrowers struggle to make ends meet as the credit crisis pushes up interest rates, savers are benefiting from a fixed rate savings war.

Savers are one of the only groups to benefit from the credit crisis, while many homeowners are finding that they can no longer afford their mortgage payments when they come to the end of fixed rate deals and their payments shoot up by hundreds of pounds.

Savers are reaping the rewards as banks and other lenders attempt to increase their savings deposits and reduce their lending in order to shelter themselves from a freeze in liquidity. Subsequently, a fixed rate war on savings accounts has broken out as providers compete for customers.

“With rates on fixed rate bonds continuing to increase, for the first time in many years we have seen all of the top six Moneyfacts.co.uk best buy places being taken up by rates of over 7%.” said Rachel Thrussell, head of savings at Moneyfacts.co.uk.