Price comparison site advises savers to ensure good rates
24th June 2008
An increasing number of consumers are turning to savings accounts to help them through the credit crunch as banks compete to offer the best rates.
According to price comparison site, Moneysupermarket.com, however, there are a number of savers who are losing money in accounts that don’t pay enough interest.
Their research revealed that there a number of current and savings accounts paying less than 5.4 per cent interest and with "the cost of living crisis" their "taxable savings are losing money".
Kevin Mountford, head of savings at Moneysupermarket.com, said: "With the government struggling to control the cost of living, it needs to start seriously thinking about abolishing the tax on savings."
He continued: "With the retail price index at 4.3 per cent, a standard rate taxpayer needs to be getting 5.4 per cent on their taxable savings to break even."
Mr Mountford advised savers to "take full advantage of their annual £3,600 ISA allowance if they want to inflation proof their finances".
Moneysupermarket has advised those that are able to contribute to savings account each month to choose a regular savers account such as the Halifax which offers 10 per cent interest.
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