MoneyExpert.com: Interest rates on savings accounts falling

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MoneyExpert.com: Interest rates on savings accounts falling

Wed 14th Jan 2009

Research released today by the price comparison website MoneyExpert.com has revealed that the interest rates offered to savers in the UK are falling.

The website found that the average interest rate, which was 3.76 per cent in January last year, has fallen to just 1.45 per cent.

MoneyExpert.com's research also found that the number of high interest accounts had also dropped.

A year ago, 507 instant access savings accounts paid out 4.5 per cent AER or higher as banks tried to attract new investments, whereas now 11 accounts pay out at 4.5 per cent or more.

Sean Gardner, director of MoneyExpert.com, said: "Many banks and building societies aren't out of the woods yet and you'd think more would be being done to reward customers who put their money into savings accounts."

Recently Which?, a consumer website, spoke out against the practice of reducing interest rates on savings accounts while keeping them high for borrowers.

The website said in a statement: "Banks can't have their cake and eat it."

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