Shop around to get the best savings rates

Savers should shop around to ensure they are getting the best savings interest rates, according to CashQuestions.com.

Annie Shaw, editor of the personal finance advice website, said that the pre-recession "credit splurge" had led to a desire to save.

But she said that finding the best savings interest rates is difficult in the face of high levels of inflation.

"People really need to be very careful that they are shopping around to get good deals, because it is really hard to get a return on your money if you're saving. Inflation means that if you are looking for a home for your money …the interest rate you are likely to get will be less than the rate of inflation," Ms Shaw explained.

In a move likely to please savers, National Savings & Investments NS&I has recently announced that it will bring back inflation-linked savings bonds in the financial year beginning on April 6th.

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2011-03-25 13:01:16 © Moneyextra.com