Savers were hit with a double whammy of bad news last week. On Tuesday it was revealed that inflation had climbed to 0.5 per cent. Then on Thursday, to little surprise, the Bank of England kept interest rates on hold yet again. They’ve remained frozen at record low levels for more than seven years now.
With the average deposit account paying just 0.4 per cent last year according to The Money Charity, it means if you’re not a savvy saver who constantly chases the best deals, you’re almost certainly losing money. That’s because inflation is eroding your nest egg more than the interest is helping it to grow.
Is that fair? Some suggest that those who end up on rubbish interest rates are doing it out of choice: they choose not to switch accounts to get decent deals.
I disagree. I believe that millions of savers simply want a decent home for their cash.
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