One specialist has recently commented on the merits of simple savings accounts and other related products.
The number of simple personal and business bank account products has been growing recently. Despite this increasing trend, Save our Savers co-founder Jason Riddle urged consumers to still do their due diligence in comparing rates on products such as fixed-rate bonds and ISAs.
Mr Riddle stated that simple savings products are a boon to consumers looking for easy understanding. Despite the simplified nature of these products however unfortunately many of them do not offer competitive rates of return, he added.
Mr Riddle further stated that many personal savings products currently available on the market are not meeting the needs of today’s consumers. The Save our Savers co-founder also felt that such products showed an overabundance of complexity as well.
Mr Riddle’s comments followed the recent launch of a consultation by the government on simple savings products. The aim of the consultation is to ensure that consumers who wish to become more educated in the realm of personal finance will not by stymied by needless complexity.
Mr Riddle feels that doing so will boost market competition and also increase the level of engagement the average consumer has with the industry. However he also stated that the difficulties in procuring a savings package that will offer a strong return may still be high.
Many industry experts agree. The post-recession banking landscape is suffering from a dearth of attractive savings offers. Many point to the UK’s rampant 3.3 per cent inflation rate. Others feel that the Bank of England’s Monetary Policy Committee has been negligent in keeping the base rate at its historic low of 0.5 per cent for such an extended period of time.