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Check your savings rates regularly and reap rewards

25th July 2012 Print

With the recent fall in the Consumer Price Index (CPI) to 2.4 per cent meaning more savings accounts now beat the eroding effect of inflation, MoneySupermarket urges savers to check their rates to avoid missing out on the best deals currently available.

A poll by MoneySupermarket asked its users whether they check their savings rates and found one in six (16 per cent) fail to check - with the majority of this group admitting they mean to check but keep forgetting (84 per cent). One in ten of those polled say they don't save at the moment (10 per cent).

However, many savers are making the most of their savings pots, as nearly a fifth of all those polled (21 per cent) always check they are on the best deals. A further 24 per cent check their rate when it's due to expire.

Eleven easy access saving accounts now beat inflation- the first time this savings vehicle has beaten the effects of inflation since November 2009. This includes the ING Direct Savings Account which currently offers 3.24 per cent. Someone saving £10,000 would earn £324.00 in interest, compared to £21.00 to if they remained languishing on the average rate of 0.21 per cent.

Kevin Mountford, head of banking, at MoneySupermarket, said: "It is vitally important savers check their rates and be prepared to switch if they are not on the most competitive deal. The difference between the average and top paying rates can be significant so moving to a better deal can go a long way to help maximise the return to consumers from their savings.  Unfortunately, some providers don't always make it as easy as it should be for customers to check the rates on their savings- this should be something they should do as a matter of course.

"It really is great news that after three years, eleven easy access accounts can once again help savers to beat the eroding effect of inflation. Savers should take note that as inflation decreases, they can reap rewards from their savings just by taking action and spending a few minutes researching the latest rates available, especially as every penny made to the savings pot can make a real difference.

"If you are a UK taxpayer, and haven't used your 2012/13 ISA allowance yet, then you can make your savings go even further."