Switching accounts 'helps access best savings rates'

Consumers should consider switching accounts as they bid to access the best interest rates on savings, it has been claimed.

According to James Daley, money editor at consumer group Which?, the Bank of England's decision to keep its base rate at a historic low of 0.5 per cent has heightened the need for people to look for the best savings accounts.

"[It] underlines the importance of keeping a close eye on your savings – and of voting with your feet when you're getting a poor return on the cash you put by," he stated.

Mr Daley said that while almost half of the variable rate savings accounts on the market are paying the bank rate or less, consumers who take the time to shop around could earn above three per cent AER.

"Switching to a new account should be a simple and painless process," he added.

The Nationwide Savings Index recently reported that 21 per cent of consumers intend to put more money aside over the next half-year, compared to 17 per cent who expect to save less.

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2009-11-09 15:50:33 © Moneyextra.com