Consumers urged to 'shop around' for their savings account

19 April 2007
Consumers have been urged to shop around to make sure they get the most competitive interest rate on their savings account.

Sainsbury's Bank has said that according to its research, savers are not getting the best deals from banks, with 16 per cent of savings accounts still offering what it calls a "derisory" less than two per cent interest rate.

"It really is quite staggering that there are so many accounts paying two per cent or less," said Peter Wood, head of savings at Sainsbury's Bank.

Mr Wood continued by saying that although the Bank of England base rate is a good guide and has led to a number raising their interest rates, savers should consider accounts that have "played fair" when it comes to interest.

Research from Sainsbury's Bank also revealed that only one in five accounts pays more than five per cent interest, while 40 per cent pay less than three per cent.

Britain's bonus recipients should certainly be among those taking note of the advice, with recent research from Birmingham Midshires noting that 54 per cent of such beneficiaries either save or invest their bonus, or use it to pay off their mortgage.

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