Interest rates not the only reason for using savings accounts, says Gocompare.com exec

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Interest rates not the only reason for using savings accounts, says Gocompare.com exec

Wed 6th Oct 2010

An expert from Gocompare.com has pointed out that people do not only use savings accounts because of the interest rates on offer.

John Miles, business development officer at the organisation, explained that many people want to have a safety net in case of a financial emergency.

"Many people will have already worked out for themselves that they are not going to make a lot from interest rates by putting their money in the building society," he said.

In his opinion, people have different priorities currently, with some aiming to get rid of certain debts and others eager to put cash aside.

He made his remarks regarding a statement by deputy governor Charles Bean calling on people to spend more to stimulate economic activity.

Mr Miles suggested this strategy could appeal to wealthy individuals who have a bit of extra cash to spare, but is unlikely to be relevant to many families.

Last month, Gocompare.com revealed that Brits are cutting back on luxuries to save money, with 31 per cent saying they are spending less on Christmas and birthdays.

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