UK savers set to feel the pain as interest rates fall
As speculation that UK interest rates are set to fall this week continues to build there are growing concerns in the UK savers market where rates have come down substantially over the last few weeks. These are very much the forgotten group of society, the ones who have made plans for the future, saved their funds for a rainy day and had hoped to live off their interest. However, as interest rates have fallen from more than 5% to 3% and look set to fall to 2% there is real concern for their income streams.
Despite a number of promises to look after savers, the government has yet to announce a suitable option or compensation plan as yet. Indeed we have even seen the national savings rate of interest fall substantially over the last few weeks, an area which for many people was vital to their long-term financial planning. Quite what will happen in the short to medium term remains to be seen, as savers very much feel they are being victimised at the expense of those who may have over extend their own finances in the good times.
As concerns continue to grow in this area of the UK population, and with further interest-rate reductions expected, this will only increase the volume of their voices.
Share this..
Related stories
Have you got wedding insurance for your big day?
While there has been a significant reduction in the number of weddings in the UK over the last decade the cost of the "big day" continues to rise each and every year. With the average wedding now costing a figure approaching £20,000 many people should be looking towards wedding day insurance to cover any potential problems on the big day and in the run-up to the big day.
Whether yo...
Savers on the back foot as spending power reduced
With UK base rates still at 0.5%, although likely to move higher in the short to medium term, savers in the UK were dealt a further blow today with news that inflation has jumped to 2.9% in December. This effectively reduces the spending power of money in the bank with savers unlikely to attract interest rates in excess of 2.9% at this point in time. So while in simple terms they may be receiving...
Read MoreEnergy bills have increased by 75% in last decade
10/12/2014 A government report has shown that household bills have increase by 75% from 2004 to 2014, much higher than the rate of general inflation, 23%. Government advisers have now warned that poor families in the UK will need more help to pay for heating their homes as energy bills rise this winter. A report from the Committee on Climate Change (CCC) has revealed that subsidies for...
Read MoreWhy is the UK government bothering with green taxes now?
With speculation that "green spending" is set to get a £500 million boost from the forthcoming budget, there are serious concerns as to why the UK government is continuing along this path even though the economy is still in a dire state. As we have covered on a number of occasions, the vast majority of "green taxes" introduced by the UK government have raised significant funds but nobody is quite...
Read MoreUK government sees unpaid pay taxes rise to £17 billion
The UK government has today received severe criticism after a report revealed that more than £17 billion is owed in taxes by the UK companies and consumers. The figure has risen significantly over the last two years amid signs that the Treasury has been unable to control the ongoing delays in payment of taxes. At a time when the UK government expects a UK budget deficit of around £175 billion fo...
Read More