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savers advised to find better uses for cash

Published: 14/02/2009

Financial Times (Money) – 14th February 2009

  

With many savings accounts now offering pitiful returns, financial advisers say they have been besieged by clients asking if their money can be put to better use elsewhere.

 

In spite of lower interest rates dragging down returns on savings accounts, some borrowers are being charged more than ever for credit cards and personal loans.

 

Research from Moneynet.co.uk shows that while the base rate has fallen from 5.5 per cent to 1 per cent in the past year, the average purchase rate on credit cards has increased from 16.77 per cent to 17.48 per cent.  The rate charged for cash withdrawals on credit cards has risen by nearly 1.5 per cent to 25.29 per cent over the same period.

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