Savers wanting better returns on their money are having to turn to long term savings accounts after the Bank of England revealed that the average interest rate on instant access accounts stood at just 0.15 per cent at the end of April. It should be noted that the figure includes interest rates on current accounts, though the figure had fallen from the previous month despite the Bank keeping interest rates at 0.5 per cent. The 0.15 per cent average is look to made even more measly when compared with the average of 2.42 per cent at the same time last year.
A glance at interest rates on tax free Individual Savings Accounts (ISAs) confirms this decline, with the average interest rate standing at 0.41 per cent at the end of April. That figure was down from the 0.63 per cent of the previous month and 4.81 per cent a year earlier.
Analysts are advising that fixed rate bonds are currently offering more appealing returns, but demand that the funds are tied up for a few years. The past few weeks has seen average interest rates on four or five year fixed rate bonds rise above 4 per cent.
Bank of England Reveal Meagre Savings Rates as Savers Go Long
Financial Services > e-banking > Banking news
Bank of England Reveal Meagre Savings Rates as Savers Go Long
Wed, 20 May 2009
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