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Savings account loyalty 'does not pay' - 09/01/2008

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Long-time holders of savings accounts should double-check to make sure they are receiving a good interest rate on their hard-earned funds, Moneyfacts.co.uk has suggested.

The independent financial advice website explained that "loyalty does not pay" when it comes to long-term savings accounts, as many of the products hit worst by falling interest rates include older accounts that are less heavily marketed.

In advance of tomorrow's report on competitive savings accounts rates, Moneyfacts.co.uk has advised that for consumers who are not prepared to regularly move their money around to find the best deals, an account that has offered a consistently good performance may be a better option.

"A consistently good performing account will offer a good return, without all of the time and effort of constantly searching the market," the site said in a statement.

It added that consumers who are willing to move their money around should take note of any expiry dates on introductory offers to obtain the best rate of savings.

In related news, the Scarborough Building Society announced today that it has released a new cash Isa with a 6.3 per cent interest rate.

© Adfero


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