Apr 17 2007
Savings accounts, such as those opened by parents saving for children, vary widely in interest rates on offer to investors, it has been claimed.
Recently published research from Sainsbury's Bank reveals that nearly 40 per cent of all savings accounts are paying interest rates of less than three per cent, while a fifth pays five per cent or higher.
Peter Wood, head of savings at the company, said: "It really is quite staggering that there are so many accounts paying two per cent or less.
"Savers simply must ensure that they shop around to get the most competitive rates."
He added that interest rates lower than three per cent are uncompetitive, advising investors to be prepared to move their funds to an account with a more beneficial rate of interest.
Last December, Halifax advised children to consider setting up a savings account with a high rate of interest while allowing spending money to be transferred in smaller amounts to a cash card account.
