Who would have ever predicted that not only would interest rates fall to a record low of 0.50%, but that we'd still be here 5 years on. This, added to the introduction of the Funding for Lending Scheme in July 2012 have meant a disastrous and unprecedented situation for savers.
As providers appetite for cash continues to be lacking, best buy rates have fallen by more than 50% in the savings market. Worst still, since January 2013, there have been over 1700 rate cut announcements to existing savers accounts – even though the base rate has remained unchanged in that time, meaning the savings market, as we thought we knew it, is now almost unrecognisable.
Although continued speculation is that we may see a base rate rise next year, albiet a slow modest rise, whether savings rates will follow that rise remains to be seen. And given the number of rate cuts in the meantime, how long would it actually take for savings rates to return to pre Funding for Lending levels?
It has never been more important to manage your savings portfolio – remaining vigilant and not allowing inertia to reward the banks and building societies which drop the interest rates they are paying.
Our unbiased Best Buy tables and free Rate Alerts can help, keeping you in touch with the best rates in the market.