Falling interest rates will hit savings account holders in the pocket, according to one expert.
Louise Cuming, head of mortgages Moneysupermarket.com, explained that in times of trouble people traditionally try and build up a savings nest egg.
However, recent cuts in the Bank of England base rate means people are being discouraged from depositing money in savings accounts .
"In times of trouble, we must have deposits with banks increasing but we've now reached the stage where there is no incentive to save - only a need to," she said.
Even if savings were to be made tax free it would do little to help as they now attract such low levels of interest, she added.
Last week, Coventry Building Society launched a range of new savings bonds offering a fixed rate of 3.75 per cent.
According to the mutual, the savings accounts offer people the chance to lock into a great rate for a period which suits them.
Low interest rates hitting savings account, expert warns
Financial Services > Savings > Savings and Investments News
Low interest rates hitting savings account, expert warns
Mon, 09 Feb 2009
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