Loyal savers 'lose out' on interest

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Loyal savers 'lose out' on interest

Thu 22nd May 2008

Savers who leave their money sitting in one account are likely to be missing out on the best rates, the head of savings and current accounts at Moneysupermarket.com has said.

Kevin Mountford suggested that some people are not aware of the fact that their rate of interest is often subject to a standard of higher rate of tax.

He also noted that many high street banks have a "plethora" of savings products, with new ones offering market-leading rates but older accounts seeing their rates reduced.

For that reason, he stated, new customers are likely to get the best deals.

"The interest rates at the moment certainly in line with how they compare to bank base rate are as attractive as they ever have been," Mr Mountford concluded.

Moneyfacts.co.uk recently reported that high street banks hold more than £400 billion of the nation's savings, but that loyal savers who keep their money in older accounts often lose out when it comes to rates.

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