Savings Rush
Credit Crunch Causes savings Rush
The current financial crisis hitting the world money markets is leading to a record volume of savings account deposits being made.
As share holders see the values of the portfolios plummet there are many that are looking to move their investments into something much safer and a high interest savings account seems to be the answer.
Cash is taking it’s place as king once again!
high interest savings account products are always a popular option during times of financial instability and they generally offer a known rate of return and are considered very safe as the odds of you losing your investment are very unlikely.
The interest rates on offer have also been very competitive for savers recently as most banks are seeking to boost their own deposits and reduce their dependence on needing to borrow from other banks to fund their lending. A result of the increased cost of borrowing that banks are facing is that the banks may find it cheap to raise money by paying interest on deposits rather than through wholesale borrowing.
Generally the online savings account banks offer the best rates but some of the traditional banks with branch networks have been offering interest rates that are higher than they would normally offer as a result of the credit crunch.