Higher rate taxpayers are unlikely to be earning any money on their savings accounts, Moneynet.co.uk has revealed. In order to gain any returns on their savings, higher rate taxpayers would need their money to be in a savings accounts with an interest rate of 2.5 per cent or higher. However, 90 per cent of high rate taxpayers were found to have savings accounts with lower interest rates than required.
Basic rate taxpayers need to be earning 1.87 per cent interest on their savings in order to enjoy any net returns, Moneynet.co.uk also revealed. However, unfortunately for savers, more than 78 per cent of variable rate accounts are currently paying 1.87 per cent or less, leaving savers with little prospect of earning interest on their money.
The figures are based on inflation returning to 1.5 per cent, and the base rate being held at 0.5 per cent. Spokesperson for Moneynet.co.uk, Andrew Hagger, advised savers to make full use of their ISA allowance, ensure they are using the best deal on offer and to look beyond high street banks . Mr Hagger also advised savers it could be prudent to take advantage of 12 month bonus offers and switch once the bonus is no longer offered.
Savers Advised to Look Beyond Banks for Best Rates
Financial Services > e-banking > Banking news
Savers Advised to Look Beyond Banks for Best Rates
Wed, 18 Nov 2009
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