Savers advised to look for cansistency

Consumers have been advised to look for consistency when choosing a savings account after research revealed that many providers are slow to pass on interest rate increases to savers.

A study from Investec Private Bank revealed that of the savings accounts rated as top ten best buys for balances of £25,000 on January 20th 2005, just three are still best buys two years later.

In addition, despite two 0.25 point base rate rises since October 2006, 102 of 865 savings accounts for balances of £25,000 failed to increase their interest rates, the bank claims, with one even dropping the rate of interest.

The firm also found that between October 27th 2006 and January 27th 2007, the average interest rate for these accounts was 4.03 per cent, a rise of 0.36 per cent on the previous quarter, despite base rate rises of 0.50 per cent.

"Savers should look for savings accounts which consistently offer the best rates of interest rather than those with short-term incentives," advised head of banking and treasury at Investec Private Bank, Linda McBain.

The Bank of England's monetary policy committee most recently voted to hold interest rates at 5.25 per cent for the third month in a row at its April meeting, although many analysts expect a rise later in the year.