Personal bank account holders may be able to enjoy higher savings rates as the money markets recover, one expert has said.
According to Rupert Jones writing in the Guardian, the "sun is shining on Britain's savers" as rates reach five per cent for the first time since the base rate began being lowered by the Bank of England last year.
Andrew Hagger at Moneynet.co.uk told the newspaper: "To get anything really decent, you do have to take a fixed rate .
"I wouldn't want to lock into anything much longer than two years at the moment, because at some stage we are going to see an upturn in rates."
While the official interest rate is currently at 1.5 per cent, savers can earn ten times that in saving accounts such as Newcastle Building Societys recently launched ISA, according to the Guardian.
However, at the moment savers are having to keep their cash in these accounts for a committed number of years or face early withdrawal fees.
Earlier this month, Moneyfacts revealed that savers had been given a boost when three providers have announced their intention to increase rates on their online based savings .
Barnsley Building Societys increased the rate of its online saver account by 0.40 per cent to 2.50 per cent, Intelligent Finance's upped the rate of its iSaver account, p by 1.10 per cent to 2.85 per cent, while Principality's e-Saver offered 2.85 per cent - an increase of 1.20 per cent on the product it replaced.
Savings rates to increase, says expert
Financial Services > Savings > Savings and Investments News
Savings rates to increase, says expert
Fri, 26 Jun 2009
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