From The BBC:
The returns paid on the most common type of savings are at record lows, the Bank of England has said.
Branch-based instant access and notice accounts, tax-free ISAs and bonds are all offering the lowest rates since records began, the official data shows.
It follows the Bank Rate being slashed from 5% since October last year to 1%.
However, many mortgage customers have benefited after interest charged on both standard variable rate and tracker mortgages for new customers hit a low.
Returns slashed
Branch-based notice accounts were paying an average of just 0.29% in January, down from 0.9% in December and 3.9% in January 2008, the Bank of England figures showed.
Interest rates on branch-based instant access accounts slid to an average of 0.51%, compared with 0.81% in December – and sharply down on the average returns of 2.77% being paid a year earlier.
Meanwhile the average tax-free ISA now offers average interest of just 1.38% – a big fall from the 5.06% rates that new customers…
Leave a Reply