People should look to take out a fixed rate saving account now because of falling inflation, according to one expert.
Writing for the Times, Kathryn Cooper explained that with the prospect of deflation - a situation where prices fall - now a very real one, banks could be pulling their best savings accounts in the near future.
She also points out that the recent cut in the Bank of England base rate will reduce the returns offered by savings accounts, with one in five offering less than one per cent if it passed on in full.
She said: "You can still get decent rates if you act fast. Halifax's Guaranteed Reserve offers 6.01 per cent fixed for six months on £25,000."
Last week, Mark Lyonette, chief executive officer of the Association of British Credit Unions, stated that the institutions offer good, safe savings accounts .
He stated that as credit unions are not under the control of shareholders they do not gamble with people's savings on financial markets .
Take out a fixed savings account now, expert urges
Take out a fixed savings account now, expert urges
Mon, 17 Nov 2008
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