Savings accounts in the UK 'see rise in bonuses'
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A new report has shown that the number of savings accounts which include bonuses on top of interest rates has increased in the past two years.
More savings accounts in the UK are offering bonuses on top of interest rates in an attempt to win customers during the recession, a new report has found.Conducted by financial website Moneyfacts.co.uk, the research analysed the number of variable-rate savings accounts coming with bonuses at different points over the past two years.
At this time in 2007, 10.8 per cent of savings accounts in the UK provided bonuses for customers, one year ago this figure was 13.4 per cent and those with money to deposit today have the choice of 16.4 per cent of the market.
On top of this, the bonuses have increased in size over the same period - from 0.64 per cent 24 months ago to 1.10 per cent now, although savers could take advantage of the highest rate of 2.65 per cent.
Michelle Slade commented on the report, saying that seven out of the top ten easy access savings accounts in the UK currently include bonuses with their deals.
However, Ms Slade warned: "The size of the bonuses continues to increase, with in many instances the vast majority of the rate being comprised of bonus. While this can provide short term gains, if savers neglect to move their money when the bonus ends, they may find themselves left with an account paying an uncompetitive rate.
"Currently the onus is on the saver to remember when a bonus period ends. To ensure you don't get caught out it, may be worth making a note in your diary, so that you can review your savings needs at that time," she added.
Savings account provider Citibank recently announced issue five of its Flexible Saver Account which allows customers to receive a return on £1 to £1 million-worth of their deposits.
New customers to the savings provider can expect to see a return of 3.10 per cent AER, which for the first 12 months is supplemented with a fixed bonus rate of 2.06 per cent gross.
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