With the next move in interest rates likely to be downwards, even diehard savers must wonder if there is any point in saving.

Now Safeway, one of the big three food supermarket chains, has spotted a gap in the market.

Its new Postal Notice Account, in conjunction with Abbey National, pays 4.3 per cent on balances over £500.

Previously, it paid 3.1 per cent on balances over £10,000 and a more typical 1.05 per cent, in line with other High Street banks, below £10,000.

Savers can open the account with a minimum £500 balance and they are limited to six withdrawals a year, after a 60-day notice period to avoid loss of interest.

The supermarket chain also launched a new Safeway Bond on August 12, with a fixed rate of 4.5 per cent on a minimum investment of £2,000.

The rate, guaranteed until the bond matures on October 1 next year, could look good if rates go lower in the autumn, although savers should study withdrawal terms before they sign up.

Safeway spokesman Kevin Hawkins said: "We try to offer something better than the High Street banks. In the era of low interest rates, 0.1 per cent can make a great deal of difference."

But do customers get a better deal when the big names of the High Street muscle into the financial services sector?

Probably not in the area of pensions. Tesco plans to sell pensions at the checkout were soon forgotten and the curtain has come down on the link-up between the Post Office and Standard Life to sell stakeholder pensions.

The initiative sold just 2,000 pensions in 15 months, an average of one pension for every nine branches of the Post Office's 18,000 network.

On simpler products, however, there are savings to be made. Retailers can more generous to small savers than some big banks.

Sainsbury's Bank pays a standard 2.85 per cent on its instant savings account up to £2,500. Lloyds TSB pays only 0.25 per cent in this range, while Standard Life Bank, operating by post and internet, pays 3.6 per cent.

Fay Hogg, of Tesco Personal Finance, said: "Our new cheque deposit facility enables customers to pay in cheques at the supermarket checkout whenever they like.

"Research shows 60 per cent of cheques are paid in outside normal banking hours. The facility is particularly appreciated by shift workers."

Sainsbury's spokesman Stuart McMillan said: "We provide simple products at very competitive prices because we are not burdened by the cost base of the traditional banking system.

"At 7.5 per cent APR on loans above £15,000 and 8.5 per cent on lesser amounts, our loans are significantly below the High Street norm of 13 to 15 per cent."