A Sainsburys Bank spokesman feels that there are more restrictions and conditions applied to savings accounts than ever before.
Having looked at the current state of the market the Sainsburys Bank spokesman has noticed how many savings accounts have restrictions on withdrawal amounts and periods, as well as how it impacts on interest rates, with some quite hefty penalties on some for making withdrawals during the year.
Another aspect that has been noted is the use of age limits on some savings accounts, targeting either the younger or older market. Ideally all categories of customer should be able to enjoy similar levels of interest and benefits believes the Sainsburys Bank spokesman.
The Nationwide Building Society, in its latest results for July, has found that 20 percent of the adult population are not putting any savings aside.
They also found that the number of people saving on a regular basis also fell, down to 46 percent from 54 percent just three months ago. Two thirds of people believe they should be saving according to the Nationwide Building Society, though the key, as with most things, is to do something about it.
A spokesman from the Nationwide Building Society said that consumers appeared to be feeling the pressure being put on them by rising prices but also asked them to at least look at savings vehicles such as ISAs and Childrens Trust Funds. These are tax efficient and so can make a big difference.
A new international bond has been introduced by the Alliance and Leicester which is a limited edition fixed interest rate for one year.
Investors can sign up for the bond from now and, with a minimum investment requirement of GBP50,000, enjoy an interest rate of 6.65 percent gross if taking the interest payment at the end of the year or 6.45 percent should interest be paid monthly. The Alliance and Leicester fixed rate bond is available to both new and existing customers as long as funding does not come from money already held by Alliance and Leicester.
An Alliance and Leicester spokesman, when discussing the new bond at its launch said that they always endeavoured to offer the best interest rate they could and this particular bond should be very popular in what is a highly competitive market.
