May 9 2007
British consumers aiming to save for their children's or for their own future ought to open an account based on its long-term interest prospects and not because of offers designed to make an instant impact, one expert has suggested.
Linda McBain, from the Investec Private Bank, insists that such is the volatility of the savings product market that many deals which may seem rewarding at first are in fact only offering good returns for a brief period.
To make her case, Ms McBain points to her own company's recent research which demonstrates that between August last year and January 2007, there were 13 different financial services firms whose savings accounts at one time or another offered a top six interest rate on amounts over £25,000.
"When you first choose a savings account, it is easy to select one on the headline rate alone. However, these can often include bonuses, which once expired, can mean the rate drops dramatically," commented Ms McBain.
"Savers need to choose an account that has consistently paid an attractive return or promises to do so," she added.
Last month, research from Birmingham Midshires revealed that more than 50 per cent of all British savers opted for an instant access account during the first quarter of 2007.
