The Bank of England has revealed that savings rates are now at an all time low. Instant access savings accounts were paying an average interest rate of just 0.72 per cent in August, a decrease of 0.02 per cent on the previous month. The figure is a new record low and a fraction of the 3.1 per cent offered in August 2008. Tax free cash ISAs are yielding even more miserly sums, with an average interest rate of 0.41 per cent – down by 90 per cent on the previous year.
Despite the poor savings rates on offer, the savings ratio has reached its highest level in six years, as consumers look to protect themselves from the economic downturn. During the second quarter, the average Briton deposited 5.6 per cent of their income into a savings account – significantly above the 1.7 per cent of the previous year.
Despite savings rates hitting an all time low, interest rates on mortgages continue to rise, with the average two year fixed rate mortgage accompanied by a 4.43 per cent interest rate in August. Five year fixed rate home loans also rose – from 5.68 per cent to 5.72 per cent.
Miserly Banks Offering Lowest Ever Savings Rates
Financial Services > e-banking > Banking news
Miserly Banks Offering Lowest Ever Savings Rates
Fri, 02 Oct 2009
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