Advice, Now's the time to save money online
Following the recent credit-crunch, caused by the 2007 American sub-prime mortgage crisis, banks have become increasingly wary of entering into mortgage deals with consumers. The number of approved mortgages in the UK dropped to an all-time low in March 2008; moreover mortgage providers are looking to boost their profit margins in order to ride through the prevailing tough market conditions, making it harder for prospective homeowners to get favourable terms on a mortgage.
However, this is not all bad news for consumers. In order to compensate for the loss of earnings from mortgages, banks are offsetting the funding shortage through its retail customers by offering better deals on savings accounts - some banks have not even lowered their savings rates despite the lowered Bank of England base rate. According to findings by MoneySuperMarket.com the average rate of the five best instant access savings accounts is 6.42%, well above the current base rate of 5%.
So while the mortgage terms offered by banks have become less favourable to consumers, they can take heed that the market for savings is becoming more buoyant as banks compete for business in this area. In addition to providing consumers with a constant income stream through interest, high interest accounts are also lower risk than alternatives such as stocks, bonds and other financial instruments.
Applying for a high interest account can be done quickly online, with several specialist websites allowing for comparison of different accounts based on factors such as interest rates, withdrawal restrictions and minimum deposits and balances. Due to the increased competition, customers are urged to spend adequate time researching different banks, as the increased competition means there is less need to compromise their own terms.
For example, some might think that opening a high interest account will require a minimum deposit of several thousand pounds, but one leading national bank is offering savings accounts with a minimum balance of just £1. At the same time, while the account in question offers unlimited access to the funds, it bears no interest in a month where funds are withdrawn from the account.
Ultimately consumers have to deal with the realities that the credit crunch has brought upon the financial market, but truth be told there hasn't been a better time in recent memory to start a savings account. So rather than lament the recent credit crunch, why not go online and see whether you can save money with a high interest account?
Disclaimer:
This article has been written for information and interest purposes only. The information contained within this article is the opinion of the author only, and should not be construed as advice or used to make financial decisions. Expert financial advice should always be sought and any links contained within this article are included for information purposes only.
Related Tags: mortgages, credit crunch, online savings, high interest account
Your Article Search Directory : Find in Articles
Recent articles in this category:
- The Secrets to Getting Low Down Payment Car Insurance
Upon purchase of a new car, there is almost always a requirement to buy an auto insurance policy as - The Wisdom Behind Auto Insurance Comparison Quotes
No one in his right mind would not go for a good deal. In fact, everyone is out on their feet and ru - The Benefits of Auto Insurance Comparisons Florida
Insurance can be expensive. This is something everyone knows about especially in the sunny state of - Auto Insurance Florida: The No-Fault Policy
There are different kinds of car insurance offered by a wide range of providers today. Different sta - Finding the Cheapest Auto Insurance Companies
Everyone is asking and searching for the cheapest auto insurance companies available today. Consider - How do You Compare Private Health Insurance Cover in Australia?
Deciding what is the best and most affordable private health insurance cover can be easy if you take - How Payment Protection Insurance Was Mis-Sold
For over six years the issue of Payment Protection Insurance (PPI) and how it was mis-sold to custom - Finding Quotes For Auto Insurance Online
One of the many concerns when you are shopping for auto insurance is being able to get access to quo - How You Can Find the Best Auto Insurance Online
When it comes to renewing your car insurance you are going to quickly discover that there are a numb - Guidelines For Searching For Auto Insurance Online
The internet can be a great source of discounts and values related to auto insurance. However, many
Most viewed articles in this category:
- Trading Forex With Pivot Points
Forex Pivot Point Trading are used today by Forex Traders and are calculated on the previous days mo - Where To Search For Free Grants
Where do you look for free grants? The search must be thorough or it could be an exercise in futilit - The Connection Between High Blood Pressure and Salt
We are a society of Salt Addicts. It cannot be denied. When you look at the things we do and the pla - Tips For Avoiding HYIP Scams
Before knowing about HYIP Scams, refer to the functioning of HYIP or "High Yield Investment Programs - Getting Credit After Bankruptcy
Consumers do not have to live sans credit following a bankruptcy. By following certain steps consume - Tips For Choosing A Credit Card
Are you looking for that perfect credit card? If so, you may be confused about what exactly to look - Cheap Car Insurance For Teens Online
Many elements determine a car insurance policy. Car insurance companies look at the person's age, hi - What Exactly Is Free Grant Money?
You can apply for free grant money from various government agencies. But where exactly does this mon - Small Business Owners Marketing and Customer Service
Marketing can be time-consuming, but it doesn't have to be hugely expensive now, thanks to the Inter - Apply Online For A Credit Card - How To Choose A Card?
The best type of credit card for you will be dependant on how you intend to use the credit card. Are