Fixed-rate accounts ‘more suitable in the present market’

Consumers should contemplate fixed-rate savings accounts during the current economic climate, suggests one comparison site.

Financial planner for Sharon Bratley implied that with the current Bank of England base rate it may take some time before other options become more favourable.

She said: “Instant access accounts allow savers to make the most of increasing interest rates, but in the meantime [provide] rates that are well below the highs offered by fixed-rate deals.”

Ms Bratley also highlighted that banks were beginning to give more competitive two-year deals on fixed-rate savings.

Accounts provided by the ICICI and Birmingham Midshires were recognised as offering interest levels over four per cent.

Her comments follow a Bank of England report that states the average interest rate on notice savings accounts and cash ISAs remains the same.

In recent news, Abbey National announced that borrowers were looking towards fixed-rate mortgages in an attempt to manage their debts.

By Francis Finch


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