Fix savings for better returns says first direct

People looking for the best savings interest rates may wish to look for fixed-rate savings deals as, according to first direct, fixed-rate deals have offered the best returns over the past decade.

UK savers have lost £629 million in interest each year by not fixing their savings interest rates, first direct's analysis found.

Unsurprisingly 2008, the year which saw the base rate reach its historically low level of 0.5 per cent, was the worst year for variable rate savers.

First direct believes that savers missed out on an average of £92.78 in interest, which equates to a loss in interest of £835.4 million over the nine million variable savings accounts held in the UK.

Richard Brown, senior savings product manager at first direct, commented: "This historical analysis shows that fixed-rate pricing over the past decade has consistently offered better returns when compared to both instant access and notice accounts."

Which? recently reported that almost two thirds of savings accounts available six years ago are now paying interest of 0.1 per cent or less.
 

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2011-02-17 12:50:18 © Moneyextra.com