Savings rates hit magic 7%
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| Nest egg (c) Rex |
While borrowers struggle to find good rates, savers have rarely had it so good. Find out how to maximise returns on your savings
The credit crunch means banks and building societies are increasingly keen to get their hands on savers’ money, and in the last year the number of savings accounts and bonds offering attractive rates has increased steadily.
“I don’t think there’s ever been a better time to be a saver. Savings rates are still going up even though further Bank of England rate reductions seem inevitable this year,” says Kevin Mountford, head of savings at price comparison website moneysupermarket.com.
“The best fixed-rate bonds are paying in up to 7% and even if you can’t afford to lock your money away, there are still some fantastic deals to be had, with a whole raft of providers offering rates above 6%.”
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“Providers rarely battle for business in this way so consumers should be swooping to take advantage. Anyone with money in a savings account paying less than 6% should be looking to move it into one of these accounts.”
The most competitive rates are typically available on accounts that tie savers in for a fixed term. Because they are guaranteed savers’ money for an agreed term, providers can afford to offer higher rates of interest.
So where can the best deals be found? To save you shopping around, we’ve hunted out a few of the most generous rates available.
13 May 2008
