Increasing competition has seen some providers increase their savings account interest rates in order to attract more customers, it has been revealed.
Research conducted by Moneyfacts shows 3.5 per cent of accounts have had their variable rate of interest raised since March, despite the base rate of interest set by the Bank of England remaining the same.
However, Moneyfacts spokesperson Michelle Slade noted that one in ten variable rate savings accounts has been reduced over the same period, highlighting how consumers need to shop around for the best available deals.
Ms Slade said the latest round of cuts - which has seen 3.9 per cent of savings account rates cut over the last month - will leave consumers questioning banks' motives.
"They will be asking how providers can justify cutting rates further, when bank base rate has remained on hold," she confirmed.
Yesterday (November 4th), the Bank of England's monetary policy committee chose to keep the base rate of interest on hold at 0.5 per cent for the eighth successive month.
Competition intensifies in savings account market
Financial Services > Saving Accounts > News
Competition intensifies in savings account market
Fri, 06 Nov 2009
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