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Get a good deal on your savings from a British bank

July 30, 2008 by admin  
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There was a time not so long ago when consumers in the UK who wanted to get a good return on their savings were looking more towards foreign banks that had recently entered the UK market for savings accounts, as they were pretty sure that this is where the best interest rates would be found. They were not wrong, as a number of foreign banks have stormed into the UK savings account market over the past couple of years, and have stormed to the top of the best buy tables by offering impressive interest rates in a bid to attract customers and keep the competition at bay.

UK savings accounts, on the other hand, were mostly known for their relatively poor interest rates, especially on easy access accounts. However, it seems that the tables are now turning, and according to industry official UK banks are now overtaking the foreign banks by increasing interest rates to impressive levels even on easy access accounts, which means that many savers could enjoy a great return on their money by depositing it in a higher interest account with a UK bank.

Officials state that main reason for this turnaround is that UK banks are now having to focus on attracting deposits from savers given the problems that most have hit when it comes to raising finance on the wholesale money markets, and the way to do this is by showing savers what they could get for their money. The government guarantee on savings, which guarantees 100% of the first £35,000, could also help consumers to become more confident about UK savings accounts again.

One official said that it looked as though these higher rates were here to stay, at least for a while. She said: ‘I think these rates could be around for quite a while as more savers are turning to British institutions as a result of the credit crunch. Savers are less keen to save with foreign banks and UK building societies in particular are benefiting as a result.’

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Tags: Financial institutions, competition, housing slump, deal, interest, Money market, slump

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  1. Competition Commission plans to look into PPI says:
    July 30, 2008 at 8:53 pm

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