Fixed-rate savings accounts interest cut

www.moneynews.co.uk > Banking > Fixed-rate savings accounts interest cut

Fixed-rate savings accounts interest cut

Thu 5th Feb 2009

Research by uSwitch.com suggests that savings accounts offering a fixed-rate of interest may not be the best option for savers, despite the falls in the Bank of England's base rate.

The price comparison website found that while savings account rates had fallen by an average of 0.53 per cent since the start of the year, those offering fixed-rate interest had seen their rates cut by an average of 0.58 per cent.

According to uSwitch.com, Halifax, which made one of the biggest rate reductions, has reduced some of its fixed rates by 0.90 per cent since the beginning of January.

Rumina Hassam, personal finance expert at uSwitch.com, said: "With the next monetary policy committee (MPC) meeting fast approaching, we can't help feeling that savings providers will continue to cut rates regardless of the outcome."

It is widely expected that the MPC will announce a further interest rate cut later today, which may in turn lead banks to cut their savings account interest rates further.

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'

Related News : Halifax
	Halifax reveals affordability boost for first-time buyers
	UK house prices fall in August, says Halifax
	People pay out 7m per year due to 'cowboy' traders, claims Sainbury's
	Tighter times mean British households go bargain hunting, claim Halifax
	Halifax announces longest ever balance transfer credit card deal
	Lenders see ten-month high in first-time buyer mortgages
	First Direct launches new fixed-cap tracker mortgage
	Housing affordability for first-timers at 8 year high, claims Halifax
	NLA survey reveals landlords jittery over possible rate increases
	Halifax: Not enough people are saving for home deposits