The State of Savings
Thursday, March 26, 2009 9:58
The threat of redundancy and a difficult mortgage market mean that a lot of people are feeling the needs to save more money. however, with Bank of England base rates chopped to 0.5%, the accessible savings landscape looks bleak at the very first glance. More than 40 savings providers have reduced their own interest rates by an avergae 0.5% ever since the beginning of March, bringing the average variable savings rate down to 1.08%.
The good news is there are some decent rates available but savers will need to turn to the internet or be prepared to accept a raft of rules, regulations and restrictions to benefit. Many of the best paying accounts now demand either large or regular deposits, or require savers to abide by tough withdrawal rules. Short-term bonuses are also being used to boost headline rates which then fall to a lower level when the time is up.
Another option is to choose a regular savings account if you can afford to put cash away every month.
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