Huge disparity in savings interest rates

There is a “huge disparity” in the rates of interest being paid by savings accounts, according to a new report.

The best accounts were found to pay five per cent or more in a study undertaken by Sainsbury’s Bank.

However, this applied to less than one in five of the bank and building society accounts that were analysed.

The research found that the majority of accounts – just under 40 per cent – pay less than three per cent.

And the worst-performers, accounting for nearly a fifth of the accounts examined, pay a “derisory” two per cent or less.

Sainsbury’s Bank spokesman Peter Wood said: “It really is quite staggering that there are so many accounts paying 2 per cent or less.”

“Savers simply must ensure that they shop around to get the most competitive rates,” he commented.

In related news, it has been revealed that the rate of inflation rose to 3.1 per cent in March, prompting speculation that the bank of England will raise interest rates again in May.

© Adfero Ltd

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