Savers 'set for interest rate boost'

Tuesday, July 6 2010

Britons with savings accounts may be hoping a prediction made by more than two-fifths of people in Wales is correct.

According to the latest Saving and Spending Survey by the Principality Building Society, some 42 per cent of those questioned believe interest rates will rise by the end of 2010.

At the moment, rates remain at 0.5 per cent - an all-time low - where they have been for more than a year.

But that will change within months, the significant portion of respondents suggest.

The confidence in the banking system mirrors the willingness of one of the eight members of the Monetary Policy Committee, who last month voted in favour of raising interest rates - the first time anybody has voted this way since the recession.

A rise in interest rates is likely to be good for savers as it would help the amount of cash they are keeping in an account to grow at a faster pace.

The Bank of England most recently decided to maintain the 0.5 per cent rate on June 10th.