Consumers 'could benefit from fixed savings accounts'
Thursday, 17 February 2011 01:52
Consumers could find they gain more interest from their savings by choosing a fixed-rate account.
This is according to research from first direct, which shows that each year UK savers miss out on an average of £629 million in interest - something that could be remedied by choosing a fixed account.
The research found that 2008 was the year in which variable rate savers were hit the hardest, with rates dropping to 0.49 per cent by the close of the year.
On average, this cost consumers some £92.78 in interest.
Senior savings product manager at first direct Richard Brown says that analysing trends from the past decade shows that fixed-rate accounts generally offer better returns.
"There are clear advantages to opting for a fixed-rate including a guaranteed return at the end of the term, however easy access accounts do have their own advantages," he adds.
These benefits include being able to move funds at short notice, as well as having quick access to money, he claims.
Responding to the recent increase in inflation, Fair Investment Company's Julie Smith recommended that ISAs should be consumers' first choice for savings.
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