Where Should Investors Hold Their Cash Allocation?

New figures reveal you may earn a better rate of interest on cash in your current account than in a savings bond

Emma Wall 19 September, 2013 | 8:57AM

Some current accounts are paying three times as much interest as standard savings accounts, shocking figures from SavingsChampion.co.uk have revealed. 

Interest rates on savings accounts have plummeted since the Bank of England dropped its base rate in March 2009 to a record low of 0.5%. Before the credit crisis consumers could be rewarded with an interest rate of up to 8% on a savings bond - but now the best buy easy access savings account is paying just 1.75%.

While interest rates on savings accounts have been on a downward trend, the reverse has been happening for current accounts. In the past couple of years as dissatisfaction with the banking system has grown customers have been voting with their feet and switching their current account provider with more regularity. 

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About Author

Emma Wall  is former Senior International Editor for Morningstar

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