An independent financial research company has stated that the decision of the Monetary Policy Committee to hold the bank base rate at 0.5 per cent further extends the period of poor returns for savers.
Defaqto explained that the average interest rate for a £1,000 balance in an instant or easy access account is presently well short of the inflation rate.
David Black, banking specialist at Defaqto, said that while he is unsurprised at the Bank of England's decision to keep the base rate unchanged, it is not positive news for "Britain's hard pressed savers".
Furthermore, Mr Black stated that the Bank's decision is particularly damaging to retired people.
He added: "There are things that savers can do to boost their savings rates . It has been apparent for sometime that inertia and loyalty does not pay in the current savings market."
Meanwhile, figures released recently by Birmingham Midshires claimed that people are saving more money now than they were a year ago.
The bank says that, in the three months to January 2010, the average amount saved per person was £776, compared to £329 in the same period in 2009.
Base rate decision is detrimental to savers, says Defaqto
Financial Services > Savings > Savings and Investments News
Base rate decision is detrimental to savers, says Defaqto
Fri, 05 Feb 2010
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