Savings account rates 'currently low'

www.moneynews.co.uk > Banking > Savings account rates 'currently low'

Savings account rates 'currently low'

Tue 27th Jan 2009

The interest rates being offered on savings accounts at the moment are low, according to one price comparison website.

Research by uSwitch.com revealed that 23 savings accounts pay interest rates of less than 0.05 per cent on the average balance of £2,813.

These figures mean that customers would earn £1.41 in interest over the course of a year, or just over 12 pence per month.

The website also found that one third of savings accounts pay rates of less than 0.5 per cent, or one per cent less than the Bank of England's base rate.

Louise Bond, personal finance manager at uSwitch.com, said: "Consumers really must keep an eye on their rates and switch to a better account if they need to.

"Savings rates will continue to drop in line with the base rate so it's unlikely the situation will improve in the next few months."

The Bank of England has reduced the base rate by three per cent in the last three months.

Click here for more banking news

Related News : Banking
	Young people 'should be taught to save'
	Families 'should plan for their children's future
	Switching bank accounts 'not as easy as banks portray'
	Brits facing finance difficulties 'should talk to their bank'
	Brits 'should utilise Isa allowances'
	Brits advised on investment options
	Children 'should be given bank accounts at 16'
	Falling inflation 'could help Brits save'
	Money worries 'are mounting for many'
	Contactless payment 'is secure and convenient'