Savings rates at ‘record low’
19 February 2009
Interest rates on the most common types of savings account have fallen to their lowest levels on record, according to the Bank of England.
Official data shows that branch-based instant access and notice accounts, tax-free ISAs and bonds are all offering record-low rates.
Many banks cut interest rates on their savings products following the most recent Bank of England base rate cut, which took the rate down to just 1%.
The base rate cut had drawn criticism from a number of commentators, who argued that base rate cuts are no longer a valid way of tackling the economic downturn, and would only serve to disadvantage savers.
However, the Bank of England has responded by saying that savers would benefit in the long run, since the lower base rate would help the UK through the recession more quickly.
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