Are the promotional rates worth the change?

Are the promotional rates worth the change?

29 August 2008

The promotional rates of high interest savings accounts can be as much as 1% p.a. higher than the standard variable rate and on rare occasions can be higher still. Promotional rates are often short-lived, however, so the savings accounts that use them may not be the best choice in the long run.

If your current savings accounts are not providing good interest rates, it may be worthwhile considering some of the savings accounts offering promotional rates. As long as their standard variable rate is higher than your current one, then they could be better value in the long run. It's impossible to predict exactly what banks will do to their interest rates over time, but taking advantage of savings accounts with high promotional rates and high standard variable rates while interest rates are as high as they are could lead to maximised savings.

Please visit our comparison page if you would like to compare savings and high interest accounts or please browse our site to read about online savings accounts and other types of savings accounts.

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