Why are interest rates on savings accounts falling so quickly?

Why are interest rates on savings accounts falling so quickyThe Bank of England announced on 8 November that base rate would remain unchanged at 0.50%, a level that has prevailed since March 2009. What can appear at odds with this decision is that savings interest rates and particularly those on offer to new savers have recently been dropping like the proverbial stone. Why is this so? We asked, Gev Lynott, Chief Executive of The Mansfield Building Society to provide some insight about current interest ...

Savings: Rescue your savings from falling interest rates

Since the start of the financial crisis in 2008, savers have had to content with all-time low interest rates and periods of relatively high inflation, but just when savers thought things couldn’t get any worse they have been hit by a double blow. Firstly interest rates on savings accounts have started to fall again as banks and building societies reduce their best savings interest rates after the introduction of the government’s Funding for Lending Scheme (FLS). Secondly, inflation has again shown signs of starting to rise more rapidly, with many experts predicting a return to relatively high levels of inflation in ...

SIPPs: Interest rates on SIPP deposit accounts fall, what are your options?

As banks come under increasing pressure to reduce mortgage rates, interest rates on SIPP deposit accounts have fallen steadily over the past couple of weeks. We know many investors only hold Cash in their SIPP, the recent rate cuts could therefore cause significant financial pain especially when existing rates mature and the number of competitive accounts are limited. So, if you are a SIPP cash investor, what can you do to improve the return? 1. Fixed rates Need advice on your SIPP?...

Savings: No quick return for NS&I Index Linked Certificates

Savings: No quick return for NS&I Index Linked CertificatesNational Savings & Investments (NS&I) have confirmed that their Index Linked Certificates are “highly unlikely” to be returning this year. On the same day that CPI (Consumer Prices Index) inflation surprisingly rose this news will come as a blow to savers struggling to get a real, above inflation, return on their savings. Inflation linked savings accounts NS&I Index Linked Certificates provide a guaranteed return above inflation, measured by RPI (Retail Prices Index), with the ...