People are no longer suffering the panic of last year’s financial crisis and are now concerned with the amount of interest they are getting on savings accounts, according to one expert.
Pierre Williams, head of research at financial comparison site MoneyExpert.com, said that National Savings and Investment (NS&I) – a government-backed services provider – saw net inflows increase by nearly 70 per cent in 2008-09, but this is beginning to change.
He remarked: “With the worst of the crisis behind us, savers are looking for more than just guarantees on their money. Interest and accessibility matter once again.”
NS&I currently provides 0.3 per cent annual equivalent rate on balances up to £10,000 with its easy access product, Mr Williams added, which is much lower than the 3.15 per cent offered by Alliance & Leicester on its online saver account.
His comments come after NS&I revealed deposits have dropped in the first quarter of this year.
By Francis Finch