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If you want higher interest rates, go online

by Alessia Horwich on May 22, 2009

If you want higher interest rates, go online


In this game of economic limbo, where the Bank of England really is trying to see how low it can go, the best instant or easy-access savings rates are those attached to online-only accounts. If returns are all you are after, then these accounts could be a good option, but they do have their limitations, which might cancel some of the benefits of a higher rate.

A recent survey by Defaqto showed that the average branch-based instant access savings account paid 0.49 per cent, almost 1 per cent lower than the average rate of 1.48 per cent paid on internet-only accounts. Across the board, returns offered online are higher, mainly due to the difference in service offered with the accounts. While in-branch accounts come with access to advice, counter service and other in-branch facilities, internet-only accounts rarely offer these extras. Brian Capon, the assistant director of the British Bankers' Association, says,:"The reason there is a differential between online...Read More >>



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