Consumers urged to look for best savings rates

Thursday, November 19th 2009

Britons have been advised to ensure they have the best interest rate on their savings despite the fact that overall rates are currently low.

According to Rachel Robson of lovemoney.com, consumers need to make sure their savings are working as hard as possible as only a tiny minority of products have increased their rates since March.

She recommended shopping around and comparing different accounts, as well as looking for products with fixed-rate bonuses.

Those prepared to lock their money away for a certain period of time should consider a fixed-rate bond, as they can offer good rates of interest, Ms Robson added.

"Just bear in mind that you won't be able to make withdrawals during the term of the bond, so only take out a bond if you're disciplined enough to leave your funds untouched," she commented.

The proportion of Britons who are not saving any money at all fell by two per cent to 22 per cent between September and October, according to Nationwide.