Bank rate maintained at 0.5%

www.moneynews.co.uk > General finance > Bank rate maintained at 0.5%

Bank rate maintained at 0.5%

Fri 5th Mar 2010

David Black, banking specialist at Defaqto said that those most affected by the decision would be people relying on savings to supplement their income, such as pensioners, who would fall victim to the inflation rate of 3.5 per cent.

He added: "The paucity of most savings rates on offer means that many with spare cash will be looking to reduce their more expensive debt."

Mr Black commented that people with outstanding debt in the form of overdrafts and unsecured loans would look to repay this in preference to earning money from low savings rates.

To savers he suggested moving their money regularly to get the best rate and take advantage of introductory bonuses.

The base rate has now been at its record low of 0.5 per cent for a year after severe cuts were made in order to combat the credit crunch.

Click here for more general finance news

Related News : General finance
	Citizens Advice welfare applauds government
	Confused.com energy defends British Gas
	Bank of Ireland passes stress test
	Tesco Mobile deal 'courts consumers'
	Scottish Widows Investment Partnership notes favourable response
	Customers should fix now, says moneysupermarket.com energy
	Confused.com highlights importance of getting the best deal
	Prices on the rise, says moneysupermarket.com energy
	Bank of Scotland economic report 'suggests transitional phase'
	Clydesdale and Yorkshire Banks security advice issued