article_snippet: In contrast, a saver on the most competitive rate of 1.5 per cent would make £225 – a difference of £210 a year.
article_snippet: With four weeks left to use this year’s £15,000 Isa allowance, many savers will question the value of such accounts.
article_snippet: ‘Each provider has to strike a balance between savings rates and mortgage rates as Each provider need both savers and borrowers.
article_snippet: Experts also blame the Government’s Funding for Lending scheme, which allowed banks to borrow cheaply in return for handing out home and business loans after the economic crisis.
article_snippet: The scheme meant that banks were no longer dependent on savers’ money – reducing the need to offer competitive rates, The scheme is claimed.
article_snippet: Isas were once seen as the go-to savings product due to Isas tax-free status.
article_snippet: But with rates at an all-time low, some savers – especially those looking to build up a short-term lump sum for perhaps a house deposit or a car – may need to be more creative.
article_snippet: ‘High-interest savings accounts offer rates of up to 5 per cent before tax, so even a taxpayer could find that this route could earn even a taxpayer more interest.
article_snippet: But Rachel Springall, of the website Moneyfacts, warned:
article_snippet: ‘Despite the gloomy outlook on savings rates, consumers need to use consumers tax-free allowance or lose it.
article_snippet: While there might be an abundance of taxable savings accounts out there, it is always worthwhile to track down an Isa equivalent and use the yearly tax-free allowance.