Savers the clear winners

We've all seen the best buy tables but what's happened to the consumer who takes out the ‘average' product?

David Black, Principal Consultant of Banking for Defaqto.com says: "Savers have emerged as the clear winner of the credit crunch with providers ever so eager to attract retail funds. But it's not all good news as with inflation ticking up to 4.3% it's becoming increasingly difficult for taxpayers to earn a real rate of return. In a non-ISA account a basic rate taxpayer needs to find a gross rate of 5.40% and a higher rate taxpayer 7.19% merely to keep pace with inflation."

"There are some exceptional deals available as many of the banks and building societies jostle with each other to secure mentions in best buy tables. It has been noticeable however that there are an increasing number of headline rate easy access accounts being launched with catches, such as limited withdrawal facilities or interest penalties, so consumers need to look carefully at the terms before they leap".

"Savers should periodically check that their existing account has remained competitive. This is particularly relevant for accounts that had an introductory bonus. Many savers will be languishing in longstanding accounts that are considerably less generous than accounts available elsewhere."