Instant access savings accounts remain king despite competitive fixed rate bond market

26 May 2009 / by Rebecca Sargent
More than half of savers hold an instant access savings account, research from Abbey has revealed as people negotiate the recession.

The news comes despite the fact that recent competition in the fixed rate bond market has pushed interest rates to above four per cent.

The second most popular savings product after instant access savings accounts is the cash ISA, favoured by 43 per cent of savers, while 20 per cent have chosen a regular savings accounts.

The research from Abbey savings is part of its quarterly savings snapshot, which also found people are now saving £315 less per month compared to a year ago.

Commenting, Reza Attar-Zadeh, director of savings and investments at Abbey, said: "This insight into the current state of British savings allows us to track the nations savings habits closely; we are certainly observing an overall decline which may not come as a huge surprise, but it's positive to see that there are some good intentions out there,"

She added: "Whether savers decide to put their hard-earned money aside from the long term benefits, for a specific purpose such as a holiday or a wedding, or for emergencies, the most important thing for people to do when thinking about saving is to work out a plan of action that works for them – then choose the right accounts to suit their needs."

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