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Rates on the up for savers and borrowers

Savings rates are currently up 1.2 per cent over January 2007, despite the base interest rate being the same in both periods.

A new survey has shown that an account with a balance of £1,000 has increased from an average rate of 2.67 per cent to one of 3.87 per cent.

However, what is good news for savers is bad news for borrowers, paying back their mortgages or personal loans.

Banks have made similar rate increases to these rates over the period - with the average two-year fixed home loan up 0.62 per cent.

Credit card rates have also increased, from a 16.72 per cent average to one of 17.01 per cent.

Faced with these shifting financial circumstances, consumers have been advised to shop around for the best deal.

One way of doing this is by visiting a price comparison website.

The research was conducted by MoneyExpert.

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