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Some g-rate news for savers…

Some g-rate news for savers…

Category: Savings

Updated: 27/05/2010
First Published: 27/05/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Savers currently struggling to find a good savings account rate could soon have reason to cheer.

With the Bank of England base rate having sat stranded at a record low of 0.5% since March last year, savings accounts rates have rather underwhelmed.

However, the Organisation for Economic Co-operation and Development has said that interest rates must rise before the end of the year in order to help bring UK inflation back into line.

By the end of next year, the think-tank said that interest rates will have to rise to 3.5%.

Any rise in interest rates would be a huge relief for savers.

The best savings account rates at present are to be found on long term fixed rate bonds, but this means tying money up for a period of at least five years.

Any rise in the Bank of England base rate should see the banks and building societies increase the interest rates across their savings accounts.

Less happy with a rate hike would be borrowers, who could suffer as mortgage rates and loan rates rise.


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