More savings accounts offer bonuses

According to research by moneyfacts, the number of variable rate savings accounts that offer bonuses is increasing, along with the size of the average bonus.

Some 16.4 per cent of variable rate savings accounts now offer savers a bonus. A year ago only 13.4 per cent offered bonuses and even fewer (10.1 per cent) offered bonuses in 2007.

The sizes of the bonuses offered are also growing, with the largest bonus offered totalling 2.65 per cent, compared to 1.55 per cent last year. The average bonus offered is now 1.1 per cent, up from 0.64 per cent in 2008.

The average Briton has accessible savings of £2,474, according to new figures from the Yorkshire Building Society.

Despite the bonuses, it is important to look at a savings account in terms of overall interest payment offered and terms rather than being wooed by the bonus offers, says Moneyfacts.

Michelle Slade from Moneyfacts says, "Savers need to ensure they fully read and understand the terms and conditions of any savings account, before they commit their money."


Source:QCK