Savings account rates 'falling fast'

www.moneynews.co.uk > Banking > Savings account rates 'falling fast'

Savings account rates 'falling fast'

Thu 5th Feb 2009

Savings account interest rates are being reduced rapidly, according to one price comparison website which compared the falling rates to the falling snow that has covered much of the UK in recent days.

According to research by uSwitch.com, in just 48 hours, 34 providers cut rates on 43 savings accounts by as much as 1.25 per cent.

The price comparison site found that the average reduction in interest rates on savings accounts was 0.53 per cent, which is more than the Bank of England's cut in interest rates last month.

Rumina Hassam, personal finance expert at uSwitch.com, said: "We fully understand that banks are under a lot of pressure as they experience the toughest economic climate since the early nineties. However it does seem shortsighted to cut rates by more than the base rate decrease."

The Bank of England is widely expected to announce another cut in interest rates later today.

Click here for more banking news

Related News : Banking
	Young people 'should be taught to save'
	Families 'should plan for their children's future
	Switching bank accounts 'not as easy as banks portray'
	Brits facing finance difficulties 'should talk to their bank'
	Brits 'should utilise Isa allowances'
	Brits advised on investment options
	Children 'should be given bank accounts at 16'
	Falling inflation 'could help Brits save'
	Money worries 'are mounting for many'
	Contactless payment 'is secure and convenient'