Lloyds offering 'good savings rates'

Consumers hoping to find worthwhile savings interest rates could look towards the Lloyds Banking Group, which is currently offering better options than the state-backed Royal Bank of Scotland RBS.

That is according to This is Money, which claimed that Lloyds is able to provide attractive rates despite turning a profit, while RBS is struggling even though it gives low interest to its savers.

Richard Hunter, banking analyst with broker Hargreaves Lansdown, told the website that this is because savings rates currently do not have much of an effect on banks' profits, which are ruled more by debts the institutions hold.

"The corporate side has played into its [Lloyds'] hands. Bad loans have fallen and it's beginning to see real benefits from the cost synergies of merging with HBOS," Mr Hunter explained.

Recent research by ING Direct could explain why Lloyds can offer good savings interest rates, after showing that the amount of money Brits are putting aside dropped by eight per cent to just over £2,000 in the first few months of 2010.

Moneyextra.com recommends you take independent financial advice before acting on any article

Back

2010-04-28 13:49:10 © Moneyextra.com