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: National Savings & Investments introduce penalties on some savings accounts

Savings: National Savings & Investments introduce penalties on some savings accountsMany of the UK’s 26 million National Savings & Investments (NS&I) savers, will now have to contend with interest penalties, if they want access their savings early, after changes announced last week. NS&I is the UK’s most popular savings provider, partly because money held in their accounts is 100% guaranteed, without limit, by HM Treasury. However, recently announced changes, will see customers having to pay interest penalties should they want to withdraw ...

Sunday Telegraph: Treasury in talks to abolish higher rate tax relief on pensions

According to yesterday’s Sunday Telegraph Chancellor George Osborne is in talks which could result in higher rate tax relief on pensions being scrapped. The article says that limiting the tax relief paid out to 40% and 50% tax payers could save the treasury £7 billion each year. Any such saving would have an almost immediate impact and could potentially be used to increase the level of the basic state pension. The apparent talks come on the back of last year’s move to limit the amount which could be paid into a Personal Pension to £50,000. Previously the maximum which could have been ...