Consumers in savings vehicle 'boost'

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Consumers in savings vehicle 'boost'

Tue 12th Jun 2007

Consumers are set to benefit from a plethora of high interest-paying accounts coming onto the market, MoneyExpert.com speculates.

The group's prediction comes after Sainsburys Bank announced it would be increasing the rate on its internet saver from 5.75 per cent to six per cent, despite the base rate having been held by the Bank of England this month.

Research carried out by MoneyExpert.com indicates that almost one in ten of instant access savings accounts pay out at 0.25 per cent above the current base rate.

Sean Gardner, chief executive of MoneyExpert.com, said that a large number of new entrants on to the savings market, coupled with further increases in the base rate, had contributed to the trend.

"The days of the six per cent savings account seem a long time ago but we believe they're set to return with a vengeance over the coming weeks," he added.

Mr Gardner warned that when looking for a new account, customers should look at the "track record" of a package.

"There are a number of attractive accounts but many of these rely on short-term bonuses or require huge deposits," he said.

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