Simple savings products may not offer best rates

Simple financial products allow consumers to understand what they are signing up for but in many cases they do not offer the best savings rates on the market, according to a financial advice website.

The comments from Save Our Savers come after the government announced a consultation on simple financial products which aims to make financial products more understandable for consumers.

Jason Riddle, co-founder of Save Our Savers, welcomed the government's move stating that there are "many financial products that are overly complex and not meeting consumers' needs".

He added: "The idea is that a range of simple financial products which would be easily comparable across a range of providers will increase consumer engagement and at the same time increase competition in the market."

However, Mr Riddle did warn that even simple products may not necessarily offer the best savings rates and the best return on money invested.

According to the Financial Planning Survey 2010, commissioned by the Institute of Financial Planning IFP, Brits are more worried than ever about money and need help to find their way through the minefield of financial services jargon and confusion.
 

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2010-12-21 13:43:23 © Moneyextra.com