Jan 8 2007
Britons looking to save for the future during 2007, such as those with child savings accounts, have been advised not stick with current accounts that do not offer the best rates of interests.
Financial comparisons firm Moneyfacts reports that with the Bank of England increasing interest rates by half a per cent in three months, many institutions increased their rates, though warned that some had previously reduced the interest on offer earlier in the year.
It reported that the average rise in interest for individual savings accounts was 0.42 per cent, while best buy rates rose from 0.53-0.68 per cent.
Lisa Taylor, an analyst at Moneyfacts, said: "Don't assume that because your savings account is a tracker or has a rate guarantee linked to base, you will automatically receive the full benefits of any rate change.
"This has certainly not been the case for many savers this time round."
She added that those with a savings account paying a poor rate of interest should look elsewhere for a better deal.
In December, Alliance and Leicester reported that up to 12 million people in Britain saved no money during 2006.
