Further interest rate cuts will be bad news for those with savings accounts, according to one expert.
Adrian Coles, director-general of the Building Societies Association, called on the Bank of England to consider the impact recent changes have had on savings accounts and not reduce the rate any further.
"For pensioners dependent upon their interest income from their savings rather than their pension, prices would have to fall by an unimaginable 75 per cent for them to maintain their living standards," he said.
The fall in the base rate from 5.75 per cent to 1.5 per cent has seen income from savings accounts fall by around three-quarters, Mr Coles added.
Yesterday, Yorkshire Building Society revealed it is launching a new range of savings accounts which provide a capital guarantee with varying minimum and maximum returns.
The accounts are offered in conjunction with Credit Suisse and two of them can be taken as cash individual savings accounts .
Rate cuts bad news for savings, expert warns
Financial Services > Saving Accounts > News
Rate cuts bad news for savings, expert warns
Tue, 03 Feb 2009
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