The Bank of England is expected to reveal that interest rates on Individual Savings Accounts (ISAs) have dropped to the lowest level since records began. Average interest rates on the tax free savings accounts have dropped to 0.85 per cent, using figures compiled by personal finance researchers Moneyfacts. Meanwhile, notice accounts now pay a meagre average of just 0.13 per cent. Instant access accounts, meanwhile, are also believed to offer returns of just 0.13 per cent on savings now, whilst fixed rate bonds remain the most lucrative form of saving, with average interest rates of 2.45 per cent.
The anticipated news follows the central bank's figures for February, which showed savings rates to be at their lowest level since records began fourteen years ago. During February, notice accounts offered an average return of 0.17 per cent, whilst instant access accounts generated 0.16 per cent. ISAs were slightly more favourable at 0.96 per cent, whilst fixed rate bonds stood at 2.63 per cent.
Moneyfacts spokesman Michelle Slade, said, 'The battle for savers tax free allowance has been as competitive as ever with numerous best buy rates being launched. However, Isas have not been exempt from being cut following March's cut in base rate and the average rate is now at the lowest level since ISAs were launched.'
Bank of England to Reveal Savings Slump
Financial Services > e-banking > Banking news
Bank of England to Reveal Savings Slump
Wed, 08 Apr 2009
Recommended links
Leading Current AccountsBest ISA Accounts
High Return Savings Bonds
Banking FAQs
Best Pension Providers
Obama Plan Boosts UK Banks
Virgin Aiming to Become Bank
Combined banking account launched by savings provider
Online banking account launched for savings customers
Leeds raises bar for internet savings
Portman rewards most loyal savings account holders
Online banking customers alerted to new savings account launch
Online banking customers alerted to new savings account
Savings accounts get less thought than jeans
Market-leading online savings bond available
Savings accounts changing, expert claims
Online banking customers alerted to preferential web savings rates
Bank of England Reveal Miserly Average Savings Rates
NatWest launches savings prize draw
Online banking company boosts savings rates by 0.25%
Consumers 'should consider switching savings accounts'
A&L: Packaged accounts more interested in interest rates and savings
Banks Remove Savings Deals
Over-50s get special Portman savings account
No change for MBNA savings customers
| Banking news |
|---|
| Banks failing on online fraud says MPs report - Tue, 05 Apr 2011 |
| Lloyds TSB is to change the interest rates on its Vantage current account - Thu, 31 Mar 2011 |
| Contactless debit cards from Lloyds TSB - Tue, 29 Mar 2011 |
| More News |
Simplyhealth Dental Plan
Affordable cover from only £7.50 per month. Join now and get first month FREE
Amex Cash Back
Credit Card
Credit Card
Get 5% cash back on purchases with Amex
Income Protection Insurance
Get an instant quote with the award winning company