Only 1 in 25 savings accounts pays 3% interest

| March 18, 2009 | 0 Comments
Only 1 in 25 savings accounts pays 3% interest<br />

Fewer than 4% of instant access savings accounts pay AER at 3% or above, according to new research from Sainsbury’s Finance.

A survey of accounts by the supermarket bank found that just 14 of the 367 instant access accounts currently available in the UK pay interest of 3% or more on balances of £5,000.

The average interest rate paid by instant access savings accounts is just 0.17%, Sainsbury’s Finance said.

Helen Cook, Sainsbury’s Finance head of savings, said: “With rates so low, savers need promises from banks and building societies that they will still offer competitive rates.”

The Bank of England’s base rate currently stands at an all-time low of 0.5%.

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