Interest rate isn't everything

by Ed Bowsher on 18 October 2010  |  3 comments
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When it comes to savings, the interest rate is important but lovemoney.com readers are also very focused on security.

The credit crunch is still making an impact on the mindset of savers. Interest rates on most accounts are rotten yet many savers are still reluctant to put money in top-paying accounts operated by banks they don’t know.

Often the top-paying savings accounts are offered by banks that have their headquarters outside the UK yet many lovemoney.com readers are unwilling to sign up with such a bank. Look at these questions and answers from a recent lovemoney.com poll:

Would you be willing to place some or all of your savings with a bank that doesn’t have its headquarters in the UK?

Yes – 46.6%

No – 53.4%

Would you be willing to put some or all of your savings in a bank that you’ve never heard of in order to get the best interest rate?

Yes – 18.2%

No – 81.8%

The message is clear, lovemoney.com readers aren’t going to chase rate above all else. I can understand that feeling but my view is that as long as a bank is protected by the Financial Services Compensations Scheme (FSCS), I’m very happy to save some money with that bank.

Thanks for everyone who replied to our poll. Three lucky readers had their names pulled out of a proverbial hat and won small prizes.

Compare savings accounts with lovemoney.com