You are here: Home - Saving & Banking - News -

Savers unaffected by credit crunch

0
Written by:
17/04/2008

Savers prepared to move their money around can take advantage of banks and building societies’ eagerness to attract retail funds, according to Defaqto.

Last time the Bank of England’s Base Rate was changed to 5% was 17 months ago in November 2006. Comparing the fixed rates available then and those available now shows massive differences. The highest available six month fixed rate bond is now paying over 1.5% more than 17 months ago on a £10,000 investment.

David Black, principal consultant of banking at Defaqto, said: “With many people thinking that the Base Rate is likely to fall further this year some of the fixed-rate products available now look outstanding value.”

Variable saving rates look set to be reduced, but with some of the newer entrants, such as Kaupthing Edge & Icesave saying that they will hold their rates for the time being, people could still maintain or better their current rates going forward if they are prepared to move their money around.

Black added: “It is clear that some financial institutions are making their decisions about fixed savings rates in the light of their own particular circumstances and are not being influenced too much by what is happening to the Base Rate. While this is the case, savers can consider taking advantage of the situation by locking into some very attractive rates. Remember though, that only balances of up to £35,000 with any one institution are covered by the Financial Services Compensation Scheme.”

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Consumers overspend to keep up with peers

More than a third of Brits overspend in order to keep up with their wealthier peers, according to CreditExpert.

Close