ISAs could be the best option for people without much capital, an expert has said.
Taking the opportunity to analyse the available in the UK is one of the most attractive options open to consumers who are struggling for cash but remain eager to store funds in a savings account.
That is the opinion of Phil Perry - director at Ark Financial Planning,
an independent advisory firm - who has insisted it is still possible for individuals without huge amounts of funds available to them to plan ahead when it comes to their monetary future.
Mr Perry explained that the most suitable products for people who have "absolutely no savings whatsoever" are "deposit-based" accounts, as these are often flexible in terms of allowing customers easy access to their cash.
"The first port of call would always be an ISA, depending upon the client's tax position of course. There are many facilities out there these days [where you can] find the best scheme," he noted.
Furthermore, the expert stated that instant access packages are usually the most worthwhile deal for consumers to take out, as this avoids factors such as having to tie their money up for lengthy periods.
He went on to say it is not currently a good idea to stash money in deposit-based funding for more than a year, as there is a widespread expectation that the Bank of England will opt to boost interest rates at some point over the next 12 months.
The Bank's Monetary Policy Committee has voted to maintain the base rate at 0.5 per cent for 29 months in succession, but many analysts feel this trend of keeping the figure at this historically low level will come to an end sooner rather than later.
And Mr Perry stated that "if that is the case and you have fixed yourself for something longer, realistically you may fall behind the times".
This comes a week after news that the financier for Santander's has decided to enhance rates attached to several of its products.
As of August 19th, the lender has increased figures attached to its most recent range of fixed rate bonds, as well as its eSaver Issue 4 savings account, which now offers a gross annual equivalent rate of 3.1 per cent.
This represents a hike of 0.35 per cent and will benefit both new and existing customers.
Meanwhile, Santander's fresh one-year now offers a return as high as 3.2 per cent, with the two-year alternative going up to 3.8 per cent.
Reza Attar-Zedah, director of savings and investments at the company, observed: "As always with such great offers, they may change at any time so I would encourage savers to act now to secure these rates."
Recently, campaign group Save Our Savers urged the government to suspend income tax on savings to help improve conditions following the recession.
