British savers expect interest rates to rise in 2011 with two third expecting rates to be higher before the New Year.  That’s the results of a new survey from Lloyds TSB which shows that beleaguered savers are hopeful that they may have something to celebrate this year – in the form of higher savings rates.

Rates expected to rise in 2011

The survey found that a third (32 per cent) of Brits predict an interest rate in the summer with almost a fifth (18 per cent) expecting to see an increase in July.  A further fifth (19 per cent) expect interest rates to rise in October 2011.

The Lloyds TSB research found that respondents expected the base rate to rise by an average of 0.45 per cent in 2011 with almost half predicting a rise of 0.25 per cent and a quarter expecting rates to rise by 0.5 per cent this year.

17 per cent of Brits think the Bank of England Base Rate will have risen to 1 per cent by the end of 2011, whilst one in ten (11 per cent) believe it will rise above 2 per cent.

12 per cent of those questioned believe that the Bank of England Base Rate will still be 0.5 per cent at the end of 2011.

Tracker savings accounts may be ideal with interest rates set to rise

Greg Coughlan, Head of Savings at Lloyds TSB said: “It is clear that Brits are expecting interest rate rises this year and we know savers are uncertain whether to lock their savings away for a fixed period with the continued speculation that interest rates will change.

“Many are unsure how these rises will affect their financial situation so for savers looking to take advantage of potential interest rate rises, a tracker bond may be the ideal solution to ensure their interest keeps up with Base Rate rises as and when they do occur.”