If you have not checked the interest rates out on your current savings account for a while, I would very much encourage you to do so? You may be shocked to discover that many banks and building societies are paying as little as a tenth of one percent on your money over the course of a year.
Now this is disgusting and massively behind the current rate of inflation that has only just dropped to 4.0% (from 4.4% last month). In real terms, if you choose to keep your money in these accounts, which really are taking the mick out of us at the moment, you will be losing around 3.9% of the true value of your money over the year.
With this in mind, it is time to consult companies such as money market and comparison websites to find companies that are offering as close to this rate of inflation as possible. This may be a little bit of a challenge, but having undertaken this same research recently, I did manage to find a few that were over 3%.
It is important that you vote with your feet where these accounts with poor interest rates are concerned. Banks and building societies can definitely afford to pay more: after all, their mortgage rates are never this ridiculously low.
Move your money into a higher interest account as soon as you can, to best negate the amount of money you are losing. Some of the best accounts may require no or limited withdrawals and may be bonds, but do investigate this option for maximum interest rates.
