Instant access accounts 'not above inflation'

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Instant access accounts 'not above inflation'

Wed 17th Feb 2010

Consumers looking to save their money in an instant access account are unlikely to find an option which provides a good rate of interest, it has been reported.

According to moneysupermarket.com, only a handful of the savings products on the market are paying out a high enough rate of interest to beat the 3.7 per cent rate of inflation.

Savers have been urged by the price comparison site to check that their savings accounts have a good enough rate to still give them some return on their money.

Kevin Mountford, head of banking at moneysupermarket.com, stated: "Savers really need to keep a close eye on the interest rate, especially on fixed-term accounts whose rate may come crashing down after the term ends."

Even more consumers could be losing out on getting good interest rates, as moneysupermarket.com found recently that 37 per cent of savers were not planning on using their full Isa allowance this year.

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