Savers urged to review savings account rates

19 May 2009 / by Rebecca Sargent
Savers are being urged to avoid savings accounts paying interest rates as low as 0.1 per cent by reviewing their accounts.

Research conducted by Defaqto for The Financial Times, has revealed that more than one in four instant access savings accounts are currently paying rates close to zero on balances of up to £10,000.

According to the research, the worst paying savings accounts include a number of high street bank and building society products, which highlights the need to compare savings account deals.

Commenting on the research, banking consultant at Defaqto, David Black told The Financial Times: "For savers, this looks absolutely appalling. It should be a wake-up call to get a better deal elsewhere."

According to the study, fixed rate bonds are amongst some of the highest paying savings accounts, with rates as high as four per cent.

Speaking of the recent competition that has sparked higher interest rates within the fixed rate bond market, Kevin Mountford, head of banking at moneysupermarket.com, said:

"With rates of four per cent plus available you can literally boost the amount of interest you earn by hundreds of pounds a year by moving your savings into one of the highest paying accounts."

Compare savings accounts to make sure you are getting the best available deal.

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