Many savers 'unaware of earnings or interest rates'

More Brits are managing to put away savings than two years ago, according to new research, but a surprising number are still unaware of whether or not they are on the best interest rate.

Two-thirds of consumers claim they try to save as much as they can and AA Financial Services figures suggest the number of people saving has grown by two percentage points compared to 2010.

A third of the 2,000 people polled by the company claimed they have no idea what interest they are earning, and may not be taking advantage of the best savings interest rate available too them.

Even if they are aware of their interest rate, many Brits will have no idea what their savings are earning them. "A quarter said that they never even check how much their savings earn," claims AA Financial Services director Mark Huggins.

There has been a small increase in the number of people taking advantage of fixed rate savings accounts, although instant access and cash Isas remain the most popular options for consumers.

Despite the growing number of people saving, more people are finding they do not have much money to put away than in 2011.

"These figures may represent small movements over the space of a year, but I believe it shows that British people are beginning to take greater care over how they look after their money and December's reduction debt is certainly encouraging," Mr Huggins added.

Those who still have lots of debt have been advised to prioritise paying off loans.

Mark Bower, managing director of moneymaxim.co.uk, believes borrowing levels need to be reduced in case the interest rate is increased, which will increase the total amount borrowers are required to pay.

He noted that while the interest rate for savings is low, it is better to pay off debt than save money.

If you're trying to save for the future contact Moneyextra. We offer a range of services that will help you find the best savings rates for you.

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2012-02-13 08:56:37 © Moneyextra.com