Savings: Why has £23 billion been withdrawn from long term savings accounts?

The money shotNew figures from the Bank of England have revealed savers in the UK have been withdrawing money from long term savings accounts at an almost unprecedented rate. According to the Bank, savers have taken a massive £23 billion out of long term savings accounts over the past 12 months; the largest amount for 40 years. The money withdrawn has either been spent or put into short term, easy access, accounts....

Fixed rate savings accounts withdrawn quicker than ever

Recent comments by the Bank of England that interest rates may not rise until 2014 has caused concern that many fixed rate savings products could be withdrawn as banks and building societies rethink the accounts they are offering. Over recent months the average interest rate paid on long term fixed rate savings accounts has fallen significantly, and recent comments from the Bank of England that rates may not rise for many months to come will do nothing to push up rates for savers. The average five year fixed rate savings account now pays a gross interest rate of 3.74%, the lowest level ...

8 tips to help make your savings work harder

In these times of low interest rates and rising inflation it has never been more important to get your savings working as hard as possible for you. We have put together eight simple tips to help your savings do just that. 1. Minimise tax Paying less tax will mean you get a better return from your savings, but not everyone’s savings are as tax efficient as they possibly can be. Start by using your Cash ISA allowance (£5,340 in the current tax year) the interest paid on a Cash ISA is not taxed, making them an attractive starting point for most savers. Next, think about ...