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Low Bank rate making savers' lives 'a misery'

Published: 10/02/2010

The best-buy savings accounts are being taken off the market on an "increasingly frequent basis", according to a report from one money expert.

Andrew Hagger, from Moneynet.co.uk, has commented that the low base rate from the Bank of England is resulting in continuing poor returns for savers.

In October 2008, the Bank's base rate of lending was lowered from five per cent until it reached a record low of 0.5 per cent in March 2009.

Mr Hagger said: "Whilst the short sharp rate cutting strategy may have been unavoidable, the resultant prolonged spell with rates at rock bottom is making savers' lives a misery.

"Until [the] base rate starts to increase, there's no prospect of savers seeing any meaningful increases on the paltry interest returns they are currently receiving."

The rate remains at 0.5 per cent, despite the fact that the UK technically left the recession at the end of last year.

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Last Updated: 11-02-2012