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Beware of high initial rates, says Britannia
15.05.2008
Consumers should be wary of savings accounts that advertise high initial rates to attract customers as they may not continue to deliver high interest rates once the credit crunch ends, Britannia building society has warned.
Britannia spokesperson Jayne Dono said that although people may be able to take advantage of "headline-grabbing rates" at the moment, they should also consider the long term implications of these deals since the companies offering them may not really have their customers' "best interests at heart".
Despite this, Ms Dono said: "There's no doubt that there are some great deals available for savers at the moment, with organisations competing against each other for business."
Research from the Building Societies Association (BSA) has revealed that 70 per cent of building society executives are confident about the coming year as people increasingly turn to the relative safety of their savings accounts.
The BSA said that building societies have experienced record savings inflows over the last eight months.
Britannia spokesperson Jayne Dono said that although people may be able to take advantage of "headline-grabbing rates" at the moment, they should also consider the long term implications of these deals since the companies offering them may not really have their customers' "best interests at heart".
Despite this, Ms Dono said: "There's no doubt that there are some great deals available for savers at the moment, with organisations competing against each other for business."
Research from the Building Societies Association (BSA) has revealed that 70 per cent of building society executives are confident about the coming year as people increasingly turn to the relative safety of their savings accounts.
The BSA said that building societies have experienced record savings inflows over the last eight months.