Finance News

Low Bank Rates Lose British Savers £18billion a Year

Interest rates at a record low level mixed with the Bank of England’s quantitative easing program is causing British savers to lose almost £18billion a year. Artificially high inflation rates because of the £325billion injected into the UK economy alongside the poor interest rates has made a huge dent in the UK people’s savings.
UKY Hacker & Young, the accountancy network said that even savings accounts that give savers higher interest rates such as Isas are currently below inflation, with an average interest rate of just 2.6% per year. As the cost of living in the UK continues to rise the money put aside in people’s bank accounts is actually losing value.
Mark Giddens, partner at UHY Hacker and Young said: “Savers are losing a staggering amount of money.” He also said that the intervention by central banks to keep interest rates low feeds through to deposit rates and ensures that savers are unlikely to see rates raised in the near future.
Director-general of over-50s group Saga, Ros Altmann said: “The Bank of England’s policies have been a disaster for savers in general and pensioners in particular. Most of those with savings or pensions have seen their income decimated by policies that have tried to help borrowers and banks, at the expense of those who tried to put money aside for their future.”