The saving interest rates that new customers are hoping to get have been falling quite sharply since about June a recent investigation has revealed. This means it is more important than ever to find the best rate possible.
The interest rates viewed amongst standard savings and also tax free cash ISA are down for those consumers looking to take advantage of them. It is also said that easy access and fixed rates have also fallen quite steeply and is thought that they can only continue to drop.
Research has showed that the best buy deals have had a bigger fall that first expected and the 5 year fix has had the biggest fall of about .4% since June which is worrying trend for all savers. It has been now three years that savers have had to deal with rock bottom interest rates ever since the bank of England interest rate his .5% since about March 2009. To make this even worse, inflation rate has been at over 3% which is also damaging to savers investments. On top of this once you take tax off; returns on these savings are not keeping up with the cost of living. Banks also have no incentive to raise interest rates as in the past they used to raise the rate to attract new customers but due to the government lead funding for lending scheme this is not the case anymore.
An independent financial analyst says that the situation is only going to get worse. The base interest rate is not going to rise anytime soon so consumers will have to deal with these low saving rates for a few years at least. With the interest rates offered for savings continuing to fall it is more important than ever to shop around and find the best rate possible. Tying your money into a longer fixed rate scheme will offer you the greatest returns and all consumers should aim to find something above 3%.
