One provider of personal and business bank accounts has recently announced the creation of two new savings account deals for their customers.
UK banking giant Lloyds TSB announced earlier this week that it has unveiled two new savings packages designed to work in conjunction with its existing savings offerings. Savers can now pick between a one-year tracker bond that carries a 3 per cent interest rate or alternatively may elect to take out a two year bond that pays 3.3 per cent instead.
The Bank of England is anticipated to raise the base rate in the coming months, which may make these two new deals appealing to those who wish to take advantage of the rate hike. Lloyds TSB savings head, Greg Coughlan, stated that the two new products offer what he called ‘the best of both worlds’ to savers in search of peace of mind or who wish to benefit from a savings product with a return rate that can compete effectively with other bank offerings.
In related news, the government was recently called upon by one consultancy to encourage savings activity in the UK. The firm stated that the government must do more to encourage Brits to put aside their cash in savings products in order to grow their savings pots.
However industry experts remain sceptical that the number of Brits storing their cash in savings products will increase anytime soon without the government first gaining control of runaway inflation. As many of the best and most competitive savings products still do not currently meet or exceed the UK’s current inflation rate, savers depositing their cash into accounts with sub-par interest rates will actually see the value of their money eroded over time instead of growing.