Expert advice to find the best savings accounts in the UK
Those seeking a savings account which pays a good return on any deposits should look past the headline rate offered by banks, according to moneysupermarket.com.
An expert has told consumers looking for a good deal on a savings account in the UK to make sure they check out all the features of a product before they commit to it.Writing for MSN Money, moneysupermarket.com spokesperson Felicity King-Evans said that while the headline rate should be one deciding factor when choosing a savings account, other features may cut costs even further.
Ms King-Evans advised those with a steady income to take advantage of deals which allow a higher rate if the customer commits to regular monthly payments into the savings account, which usually have a minimum amount.
One such recommended deal is the Abbey's issue eight of its Super Fixed-Rate Monthly Saver, which currently pays six per cent as long as deposits of between £20 and £250 are made every month by standing order.
However, those believing they automatically have access to the cheapest savings accounts in the UK by browsing the web are fooling themselves - rates for online and offline deals are roughly the same, the expert said.
She added: "Many financial products are more competitive if you apply for and manage them online, because it cuts the provider's overheads.
"Unfortunately, that doesn't seem to hold true for savings accounts."
Lloyds TSB recently increased the interest on its fixed-rate Monthly Saver account to five per cent, available for the next ten months.
Customers can receive the high interest rate if they make minimum monthly deposits of £25 over the full year-long term and those with some extra savings can increase this to a maximum of £250.
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