Brits Favouring Pensions Over Savings Accounts.
3 Mar
Reductions in interest rates and increasing economic pressures have left many Brits unable or unwilling to add to their savings account. As the cost of food remains high and many salaries are frozen or cut many of use are not using our accounts as we once were.
The Financial Times reports that many seem to be favouring their pensions over savings accounts. If interest rates get much lower this may become more common.
“With the base rate at an all time low and the recent disclosure by the Bank of England that returns have dropped to an average of 0.29 per cent on some savings accounts, it is not surprising people have started to question why they are bothering.”
Martin Palmer, Friends Provident.
Sharon Bratley of fairinvestment.co.uk says that raiding savings accounts should be a last resort. With a third of Brits expecting their disposable income to reduce within the next few months it may become a reality for more of us.
Some banks are suggesting that it is now a good time to switch and save in order to make the most of savings. Their are various offers available to those looking to switch current account. It is worth remembering that you have little to gain by being loyal to once particular bank, and many are choosing to go wherever the best deal is.
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