Rising inflation could mean that some savings accounts are not offering as good a return as it might at first seem, one expert has warned.
David Black, principal consultant of banking for Defaqto.com, explained that an ordinary rate taxpayer will have to find a savings account with a gross rate of 5.4 per cent and a higher rate taxpayer one offering 7.19 per cent just to keep pace with inflation.
He said: "Savers should periodically check that their existing account has remained competitive. This is particularly relevant for accounts that had an introductory bonus."
People with longstanding savings accounts might not be getting the best rate of interest available, he added.
However, anyone who is looking around for a new savings account should make sure that they look carefully at the terms in case there are limits on the number of withdrawals they can make or other such catches.
Yesterday, it was revealed that Yorkshire Building Society has been given the 2008 Best Regular Saver Account Provider award by financial website Moneyfacts.co.uk
Shop around for inflation beating savings, expert states
Shop around for inflation beating savings, expert states
Thu, 19 Jun 2008
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