Savers should be wary of “headline-grabbing” rates

Savers have been warned by one financial expert that great rates of interest may not be all that they appear.

According to Jayne Dono, a spokesperson for Britannia, saving products have been introduced in recent times by lenders who want bring in new savers, but the products may not “continue to deliver” when the effects of the credit crunch have diminished.

“While savers may be benefiting from headline-grabbing rates in the short term, they should also be aware of the long-term prospects and whether these organisations really have their best interests at heart,” she advised.

However, Ms Dono added that there are “some great deals” in the savings market at the moment, as several firms are trying to compete for custom.

Recent research from the Building Societies Association suggested that many building societies are confident about business during 2008, with many organisations experiencing record savings deposits by consumers over the last eight months.

© Adfero Ltd

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