July 5, 2017

SAVINGS ARE A FUNCTION OF ECONOMIC IGNORANCE:

Savers left in the red after a decade of low interest rates (Phillip Inman, 5 July 2017 , The Guardian)

It has been a difficult decade for savers. For 10 years they have suffered falling or ultra-low interest rates, leaving them in the red on their deposit accounts when they might reasonably have expected a modest gain.

The last time the Bank of England put up interest rates was on 5 July 2007. But the financial crash put paid to further rises. In the next 20 months it tumbled to 0.5% and then further in the wake of last year's Brexit vote to 0.25%. [...]

Today almost £180bn of cash savings sits in non-interest-bearing accounts and the few people who shop around earn just 0.4% on money in instant access accounts and 0.9% on notice accounts.

Posted by at July 5, 2017 6:00 AM

  

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