"e-savings offer better returns"
02/05/2007
Millions of savers are likely to be losing out on thousands of pounds in interest because of the massive disparity between rates for online, e-savings accounts and ordinary instant access High Street savings accounts, according to new research by personal finance data analyst Moneynet.co.uk.
Top of the range Internet instant access accounts deliver above base rate interest of 5.70% - vastly superior to some High Street banks, which pay a below inflation level of 1.7% on deposits of £25,000 and more.
A saver with £25,000 in a Cheltenham & Gloucester account would earn just £425 a year before tax. But that same amount in one of the 5.70% paying accounts would enjoy interest at £1,425 a year.
Moneynet.co.uk chief executive Richard Brown said: “Leave that same £25,000 there for five years, and you have earned a generous £7,125 - a full £5,000 more than had it languished in the C&G Gold account. Banks and building societies will not divulge precisely how many of their customers have savings accounts due to commercial sensitivity. But there are 191 million live bank accounts and a further 15 million adult building society savings accounts, so it is fair to assume that a substantial percentage of these accounts will be held in ordinary, poorly paying High Street accounts."
Tough for many older people who don't have, or don't want computers, and the huge disparity between the standard and e-savings rates is surely unfair on the millions of people who are bound to have High Street based savings.
if you bank with your High Street, and do have a computer, it might be worth dong a bit of research. Or you can call Moneynet on 020 8460 2833, or visit their website which is linked below.