Now ‘is the best time to save’

Now is the best time for a while for people to save their money, according to one price comparison website.

Moneysupermarket.com stated that anyone with spare cash should be looking to put it away at the moment, with average interest rates on the increase.

A typical savings account will offer 3.11 per cent, which is 2.61 percentage points greater than the UK’s base interest rate.

This compares to last year when the average of six per cent was one percentage point higher than the base rate.

Kevin Mountford, the firm’s head of banking, suggested the situation is favourable for those looking to incorporate savings into their debt management practices.

“We’ve got a savings war on our hands at the moment as banks and building societies battle it out for our cash,” he commented.

Last month, Moneysupermarket.com reported that more people in the UK are paying off their non-mortgage debts at the moment than increasing them.

By Chris Trimble