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Keep an eye on your savings accounts interest rates

With the economy struggling to surface above the waves of recession, and the Bank of England reluctant to raise interest rates, savers are having a hard time of it. Savings accounts interest rates have been in the doldrums for a while, so it can pay to shift your money around regularly to chase the best rates.

The problem is that you need to keep a constant eye on your savings to make sure they are earning the optimum return.This usually entails changing accounts regularly, often every year.

Banks and building societies have an annoying habit of advertising eye-catching interest rates on savings accounts in large print, with the catch in tiny print below. Astute investors will notice that this seemingly-generous rate includes a bonus element for the first year. After that your savings will slip back into the world of the negligible return. Cynically, banks refer to the practice as "suck and slap": they suck you in then slap the rate down.

Examples include current top deals from the Coventry Building Society (www.coventrybuildingsociety.co.uk) whose 3.15% Poppy Saver account includes a 1.15% bonus element, and the Newcastle Building Society, whose rate of 3.15% includes a 1% bonus.

The answer is to play them at their own game, and take the high rates until the day the bonus expires, then move immediately to another bank to exploit their bonus deal.

To know where to find the best returns, check the comparison sites like www.moneysupermarket.com and www.moneysavingexpert.com for the latest news of the best savings accounts interest rates on the market.

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