Fixed-rate accounts best for savers

With Bank of England cuts in the base rate of interest expected to continue, Brits with savings are best to invest in fixed-rate accounts to protect their finances.

This is the advice of price comparison site Moneysupermarket.com, who believe that a fixed-rate ISA is the safest place for savings during the economic downturn.

And with recession and job losses looming, the number of people saving is on the rise.

Research by Moneysupermarket found that 62% of people who have extra money because of lower mortgage repayments plan to stash away the cash in savings rather than spend it on the high street.

Kevin Mountford, head of banking at the site, said fixed rate accounts are best for customers who don’t need frequent access to their savings.

For savers who can afford to lock away their spare cash for the next 12 months, fixed rate accounts are the best option, Mountford said.

A recent survey by Halifax found that many people in the UK plan to make contributions to their savings account for Christmas this year rather than giving presents.

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