Savings and borrowing rates

The Bank of England has announced that the bank base-rate will remain at 0.50% - the base-rate has now been at this historic low for 26 consecutive months.

Defaqto has released figures comparing the average and highest savings and borrowing rates currently available with the rates available just after the base-rate was originally reduced to 0.50% in March 2009.

Defaqto's data highlights the following key trends:

Average savings rates are higher across the board with the greatest increases evident for longer term fixed rate accounts

Best buy savings rates have actually fallen for variable rate accounts, as well as for some of the shorter term fixed rate savings accounts

On average, unsecured loan rates have increased

Interest rates for low Loan-to-Value mortgages have reduced slightly on average

David Black, Defaqto's Insight Analyst for Banking, said: "The prolonged low-base rate has created a challenging environment for savers and borrowers alike. At the same time, however, when it comes to certain types of savings accounts and mortgages our data shows that there is scope for people to benefit if they're prepared to regularly review their existing arrangements to see whether they can get a better deal elsewhere.

"In terms of savings, there are some attractive deals out there, such as introductory bonuses and guaranteed minimum rates, and people should seek to take advantage of these.

"With unsecured lending becoming more expensive, consumers should consider all potential borrowing options to ensure they get the right type of product for their needs.  Importantly, someone's credit status will determine whether they can get a loan and, if so, what rate they may be offered.

"With regards to mortgage borrowing, uncertainty around when and by how much the base-rate will rise makes it difficult for people to know which type of mortgage to opt for.  However, average rates for many fixed and base-rate tracker mortgages are more favourable now than two years ago."