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Product category: Mortgages / Housing
News Release from: Moneysupermarket.com | Subject: Mortgages
Edited by the Insidemoneytalk Editorial Team on 14 April 2008

moneysupermarket.com comments on the
impact of today's base rate cut for
savers

Commenting on the impact of today's base rate cut for savers, Kevin Mountford, head of savings at price comparison site moneysupermarket.com, said:

"Homeowners may be scratching their heads at what today's base rate cut means for them but for savers, with the gap between base rate and the average savings rate at an all-time high, there's still ample good news if they look hard enough "We saw Abbey upping the rate on its eSaver Direct account earlier this week by 0.25 per cent to 6.5 per cent; a brave move given the MPC was almost guaranteed to lower rates today

Whereas NS and I have passed on the full rate cut to its Direct ISA customers, we've also seen Kaupthing Edge fight to stay near the top of the best buy table by holding their nerve and not passing on the cut.

"Savers really are in the enviable position of being able to pick and choose where they stash their cash - amidst all the gloom around mortgages, institutions are still desperately trying to rake in as much as they can in retail deposits.

But as ever, people need to check the terms and conditions of their account carefully, as many of the high rates can be made up of a short-term bonus which is usually for a limited time only, or there could be penalties for withdrawal.

"However, if you do feel there could be even further base rate cuts in the near future, it's worth considering fixed rate products where around 6.75 per cent is still available.".

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