Banks Introduce Better Savings Accounts

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Banks Introduce Better Savings Accounts

Wed, 24 Jun 2009

In a sign that the economy may be beginning to recover, interest rates on savings accounts have begun to increase. Savers have been hit hard by the credit crunch, with returns on their money decimated by the incessant interest rate cuts by the Bank of England . Research from data provider Moneyfacts has revealed that the average rate on easy access accounts has risen to 0.71 per cent, up by 0.07 per cent from 0.64 per cent last month. Although small, the rise represents the first increase since rates began falling from their October peak of 3.71 per cent.

At present, Abbey and the Newcastle Building Society appear to be offering the best savings account products. Newcastle Building Society's 5 per cent five year fixed rate ISA is almost one per cent higher than similar deals from its competitors, and allows transfers in as well as withdrawals subject to 90 days notice. Abbey, meanwhile, are offering a packaged account paying a fixed interest rate of 6 per cent on balances of up to £2,500 for one year, as well as offering annual worldwide family travel insurance, breakdown cover and a £100 interest-free overdraft .

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