If you have any spare cash, then now is the time to get saving as for the first time in six years, savings rates have broken the 7% barrier!

For savers, who greatly outnumber mortgage borrowers, this is good news!

That's because there are roughly seven times as many people with savings accounts of one sort or another as there are people with mortgages (although where they all are is a bit of a mystery...)

Stroud & Swindon building society today launched a savings bond fixed at 7.05% until December 2008.

And the Standard Life bank is also offering a similar deal at 7%, although for just six months.

The next best rate is 6.91%, on offer from Birmingham Midshires.

The financial information service Moneyfacts said that more than 20 providers have increased their savings rates in the past fortnight, even though the Bank of England left the base rate unchanged at 5.75% last week.

Rachel Thrussell of Moneyfacts said some rates had gone up by 0.35%.

"Lenders are looking for alternative ways to fund their mortgage lending, and it seems as if increasing deposits has been the first port of call for many," she said.

"A return of 7% is quite outstanding," she added.

The recent rise in the cost of lending between banks, which has pushed up some mortgage rates, is now leading to higher savings on some accounts (which of course bring in much needed cash for the banks and building societies at such a tricky time for them!)

So why have the banks and building societies gone all warm and fuzzy on us and given us the best savings rate since 2001?

Well it's clearly not out of the sheer unbridled generosity of their heart is it?

It's mainly in due to them trying to pull in extra funds from savers rather than having to borrow on wholesale money markets. The rates at which banks lend money to each other have been rising sharply in the face of continued turmoil in global credit markets (thanks to the poor credit mortgage market in the good ole US of A!)

Rachel Thrussell went on to say that "With little to differentiate between fixed-rate bonds, rate really is the key feature, and with so many providers desperately seeking the top spot in the charts, there is a fiercely fought contest to win our savings.,"

So, it doesn't really matter that the banks and building societies are merely trying to stabilize themselves after a tricky few weeks...

...if you have got some cash to save jump on board the 7% bandwagon while it lasts!

Good news for you as savings war breaks out!