1 in 10 Brits would dip into savings following rate rise

One in ten households would withdraw from their accounts with the best savings interest rates as soon as the base rate rises, it has been revealed.

New research by Legal and General found that while 53 per cent of Brits plan to do nothing with their savings when the Bank of England approves a rate increase, 11 per cent would start to withdraw their money.

The main reason for this was to pay the increase in mortgage rates that would also come about, while those without a home loan said they would dip into their savings to pay household bills.

"As our figures indicate, over half of homes in Britain 12 million are budgeting on a fine balance between managing to pay bills and sinking into debt and so can no longer afford to save," said Mark Gregory, Legal & General executive director of Savings.

Recent research by R3 revealed that almost half of Brits are worried about money, with credit cards cited as the most common concern.

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2011-08-15 14:19:17 © Moneyextra.com