Savings market has gone “bananas”

Posted 2008-05-15

Savers have been told to take advantage of the current climate in the financial markets as there are some attractive deals available to them.

David Kuo, head of personal finance at Fool.co.uk, said that the high levels of interest being offered on some savings accounts can be beneficial to consumers but did urge caution when considering which one to choose.

He stressed that while some of the rates may seem very good value, the deal could turn out to be a double-edged sword and that those who offer the best product tend to be the most high-risk, as a rule of thumb.

"The savings market has gone bananas, but its ripe for savers. They can now earn attractive rates of interest on a bunch of deposits. However, savers need to beware because if something looks too good to be true then there may be a catch," Mr Kuo said.

According to research carried out by Nationwide, 84 per cent of people considered it important that they are not charged for withdrawing money from a savings account.

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