Low base rate puts consumers off saving

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Low base rate puts consumers off saving

Fri 5th Feb 2010

Investors are deciding against putting their money into savings accounts due to the prolonged low interest rates on offer, the Fair Investment Company has revealed.

Research carried out by the financial advice company found that 76 per cent of investors intend not to invest in cash while the Bank of England's base rate remains at 0.5 per cent.

Instead, many are choosing to put their money into riskier investments in a bid to get the highest returns on their money.

Nick Scarrett, head of pensions and investments at Fair Investment Company, said that with the average Isa rate standing at 2.12 per cent and easy access accounts paying out 0.76 per cent on average, it is unsurprising that many people are looking elsewhere.

For anyone thinking of investing their money, the Fair Investment Company has launched a free Isa guide to help them make an informed decision about the best place to keep their cash.

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