Good news for you as savings war breaks out!
Saving is the new spending or so we are led to believe! (mainly due to most of us now being fed up with the sots of things…)
So it is good to hear that there is a war breaking out in the Internet savings market, where there is a boom in the number of savings accounts paying you 6% or more in interest!!
It seems there is no better time to get on board the savings train!
The impartial price comparison site MoneyExpert.com said firms are increasing their savings rates in reaction to changes in the Bank of England base rate and because they want to attract more customers!
Sainsbury’s Bank recently said it would increase its Internet saver account rate from 5.75% to 6%.
Around 9% of instant access savings products already pay interest at a quarter-point above the current Bank of England base rate for deposits above £1 or £10, according to MoneyExpert.com.
These also include ICICI Bank’s HiSave account, paying 6.05%, HSBC’s online saver at 6%, and Northern Rock’s Silver Savings online account, also yielding 6%. (The latter is only available to the over-50s)
Sean Gardner, chief executive of MoneyExpert.com said the days of 6% + savings accounts are set to “return with a vengeance over the coming weeks”.
He said “It’s not really been since 2000/01 that savers have had a selection of savings accounts to choose from that have offered 6% or more. There have been a number of new entrants to the savings market offering market-leading rates and this, coupled with a further increase in the Bank of England base rate being factored in by the savings industry, has meant that we now have a select number of accounts paying 6% or more.”
However, he urged consumers to read the small print: there are a number of seemingly attractive accounts which rely on short-term bonuses or require large deposits.
So if you fancy making the most of what little spare money you have, why not take a look at some of the accounts mentioned above, and store a little something away for that rainy day!