Britannia: Beware headline-grabbing rates

Britannia building society has warned consumers to be wary of “headline-grabbing rates” on savings accounts as they may not be a good long-term option.

Jayne Dono, a spokesperson for Britannia, said that a number of organisations have been attracting new savers with high initial rates on their savings.

“There’s no doubt that there are some great deals available for savers at the moment, with organisations competing against each other for business,” said Ms Dono.

However, she warned that although people may benefit in the short term, “they should also be aware of the long-term prospects and whether these organisations really have their best interests at heart”.

Recent research from the Building Societies Association (BSA) shows that the majority of building society bosses are optimistic about the year ahead, despite the credit crunch.

Building societies have experienced record savings inflows over the last eight months and they expect the trend to continue as consumers seek safer saving options, according to the BSA.

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