Savings accounts are relying on bonuses to push themselves up the best-buy charts
Bonuses flatter top rated savings accounts
Wednesday, 13 Apr 2005 17:25
Many of the top rated saving accounts owe their performance to bonuses, according to Investec Private Bank.
Overall, seven of the top ten best buy accounts have bonuses, with an average of 0.59 per cent.
"There are some attractive returns for savers but it is important that they read the small print so that they understand all of the terms and conditions offered by savings accounts," explained Linda McBain of Investec Private Bank.
"Many top accounts rely on bonuses and if savers are unaware of this, they can be in for a shock when these expire and their rates fall."
Investec found the average interest rate for the top ten savings accounts on balances of £25,000 was 5.43 per cent gross.
Looking at the seven accounts alone however, once their bonuses expire, their average rate of interest falls to 4.74 per cent.
Investec Private Bank launched its savings index in February, which tracks interest rates on savings accounts for balances of £25,000.
It aims to bring greater transparency to the savings industry.