Smaller building societies offer better rates

| August 5, 2010 | 0 Comments
Smaller building societies offer better rates

Smaller building societies are often able to offer better interest rates on current accounts than big banks, a financial expert has claimed.

Phil Perry, director of Ark Financial Planning, said smaller, regional lenders such as mutual societies can offer savers higher rates of interest because they have members rather than shareholders.

“If the members are looking for something a little bit more special, they will want to be able to obtain better deals and arrangements,” he said.

However, he warned savers to be wary of headline grabbing offers which may quickly disappear after an account is opened because smaller institutions can’t afford to keep offers open for as long as bigger banks.

“In a way it is just like letting you know they are still there and still competitive,” he said.

“They don’t have the same outlay as some of the bigger boys.”

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