Fixed-rate savings 'offering better returns'
A new report has taken a closer look at how the long-term low base rate has impacted the market for borrowing and savings.
The rate has remained at 0.5 per cent for 26 months and research carried out by Defaqto compared returns available in March 2009, when the original reduction took place, to those on offer now.
Among the main findings of the study were that variable-rate accounts have experienced a dip in savings rates, while those hoping for the best deals may like to choose fixed-rate products.
Insight analyst for banking at Defaqto David Black stated consumers have been challenged by the economic climate but noted good deals are still available for people who are prepared to look around.
"In terms of savings, there are some attractive deals out there, such as introductory bonuses and guaranteed minimum rates, and people should seek to take advantage of these," he said.
Mr Black added that in regard to borrowing, it is important individuals search for a product that is best for them.
Use the Myfinances.co.uk comparison tools to find the best deal on a savings account
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