There is no denying that it has been a poor year for savers in the bank. Those of you who have been saving hard for your future, might feel let down and disappointed and rightly so. Things don’t seem good enough as of now. Interest rates have collapsed in the last 6 months which have caused immense cuts in the savings.
It there something you can do about it? Is there any use of saving money in banks henceforth with the massive cuts in interest rates?
Rates are getting cut, what you can do about it?
Research by Moneyfacts.co.uk, which is a financial information website, has found that the rates of savings have gone to new lows since January. People who have saved in different accounts have been hit hard because of predictions that the Bank of England is going to reduce it base rate as much as half from June, to reduce the impact a Brexit caused economic slowdown.
- As if that was not enough, the rate on the average easy-access account has fallen from 0.64% in January to 0.56% as of now.
- The average one-year fixed-rate bond has gone down from 1.43% to 1.15%.
The biggest surprised was the five-year fixed-rate bond having tanked down to 2.63% to 2%.
Moneyfacts analyst, Charlotte Nelson said: “Savers are not being able to control the downhill tasks of getting a decent return in the first half of this year. As of now, more than 900 individuals have faced cuts which are extremely shocking considering there are only 111 rate increases over the same period.”
What you can do about it
Those of you planning to buy a home, then you will want to invest in French bank RCI’s which is 1.45%. However, you will want to know that is not protected by the Financial Services Compensation Scheme (FSCS). As you can see, there is no need to panic, unless you really have to. There is no denying that the market has fared badly with several cuts in interest rates, which are not really good for banks.
As a saver of money in the bank, you will want to ensure that you follow the above pointers, which have been mentioned, which can really enable you to save sufficient in the years to come.
