Save Our Savers urges the government to help savers

Save Our Savers has urged the government to help savers find the best savings rates as the Bank of England seem determined to keep the base rate at the historically low level of 0.5 per cent.

The base rate was decreased to 0.5 per cent in March 2009 as a response to the financial crisis.

"It may well have been the right response for the economy as a whole, but it certainly wasn't the right decision for anybody who was relying on their savings for income," said the savings organisation.

The organisation added that headline savings interest rates tumbled and behind the scenes rates were in fact far worse for savers.

Which? recently reported that almost two thirds of savings accounts available six years ago are now paying interest of 0.1 per cent or less, the majority of the remaining third were under 0.5 per cent.

Earlier this month, Mervyn King, governor of the Bank of England, said: "I sympathise completely with savers and those who behaved prudently who now find themselves among the biggest losers from this crisis."
 

Moneyextra.com recommends you take independent financial advice before acting on any article

Back

2011-02-02 10:47:17 © Moneyextra.com