Banks are tempting savers with high interest rates
As the number of mortgage deals shrinks, the banks are switching their attentions to enticing savers with some excellent saving rates.
With the number of approved mortgages dropping to an all time low in March, you could be forgiven for thinking that banks were putting down the shutters to their customers, grimly waiting for the credit crunch to subside.
Actually whilst around two thirds of mortgage products have been withdrawn over the last few months, the banks and building societies have been turning their attentions to savers.
Savers are being enticed by banks with some excellent deals at the moment. Some of the banks have not even lowered their savings rates in response to the lower Bank of England base rates.
Take Abbey, for example. They are offering an instant access savings account with a 6.50% AER on balances above £1,000. The current base rate is 5% so this showess you how keen they are to attract savings business at the moment.
According to findings by MoneySuperMarket.com the average rate of the five best instant access savings accounts is 6.42% Astoundingly, this is up 0.04% on last week’s rates.
Banks and building societies are desperate to increase their funds and liquidity and savers provide them the means to do this.
So whilst the mortgage market becomes less competitive, the savings market is becoming more buoyant as banks compete for your business.
Now is a great time to be a saver so make sure that you are getting the best rates possible.