Expert: Savings account interest rates likely to remain low next year

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Expert: Savings account interest rates likely to remain low next year

Tue 23rd Dec 2008

An analyst from moneysupermarket.com has predicted that the rates of interest offered on savings accounts are likely to remain low next year, meaning savers can expect lower returns on their investments on average.
 
Kevin Mountford, head of savings for the price comparison site, said, "a low base rate environment will mean less exciting headline rates on offer, but there will still be a gap between the best accounts and the average accounts".
 
He added: "No one could have predicted 2008 was going to be so crazy for the world of savings."
 
Recent months have seen the Bank of England cut the base rate of interest by a total of 2.5 percentage points as the Monetary Policy Committee seeks to ease up the flow of credit and mortgages.
 
But these cuts have seen many banks slash interest rates on their savings accounts.

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