23 February 2009
A significant number of savers in Britain are opting to invest their savings in current accounts because they cannot find a better rate of interest elsewhere, it has been found.
Figures produced by the Post Office suggest that just over one in five savers (21%) now keep their nest eggs in a current account for this reason.
This compares with 32% who are storing their money in cash individual savings accounts and 44% who have invested in savings accounts.
Commenting on the figures, Richard Norman, Post Office Director of Savings, said: "Savers need to take extra care of their money by choosing a home for it wisely. There are hundreds of poor paying accounts, so people need to make sure they avoid them."
He added that only 23 per cent of people questioned said they had been proactive in looking for a good savings deal.
Earlier this month, the Bank of England's monetary policy committee reduced the base rate of interest in the UK to 1%.