Rachel Springall

Savers braced for more turbulence and paltry returns

As if things weren’t bad enough for savers, the months ahead are looking bleaker than ever.

The repercussions of the EU referendum sent the markets into chaos and in turn led the Bank of England to drop the bank base rate to 0.25 per cent, the lowest level in more than 300 years. So where is the good news in all of this? I’ll break it to you now – there isn’t going to be any for quite some time.

Savers were doomed to poor rates well before the Bank of England stepped in. But the decision gave providers an excuse to slash savings rates even further. So far this August we have seen 254 savings cuts, the most in any month this year. July was little better with 154 cuts – and that was before the base rate change.

Cash returns are dwindling and this is likely to be the case for the foreseeable future.

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