BSA: Rate cut in "kick in the teeth for savers"

www.moneynews.co.uk > Banking > BSA: Rate cut in "kick in the teeth for savers"

BSA: Rate cut in "kick in the teeth for savers"

Fri 6th Mar 2009

The Building Societies Association (BSA) has warned that yesterday's decision to cut the base rate is likely to reduce already diminished interest payments for savers.

Adrian Coles, director general of the association, described the Bank of England's reduction of the interest rate to 0.5 per cent as "a kick in the teeth" for those who have put money into savings accounts.

"It will be felt hardest by the many elderly people who have saved responsibly all their lives and are reliant on their savings interest to maintain an acceptable standard of living in retirement," said Mr Coles.

He nevertheless said that the announcement that the central bank will begin quantitative easing measures was welcomed by the BSA.

Earlier this week, the BSA had called on the Bank's monetary policy committee to consider the impact of previous rate cuts before making any further reductions.

Click here for more banking news

Related News : Banking
	Young people 'should be taught to save'
	Families 'should plan for their children's future
	Switching bank accounts 'not as easy as banks portray'
	Brits facing finance difficulties 'should talk to their bank'
	Brits 'should utilise Isa allowances'
	Brits advised on investment options
	Children 'should be given bank accounts at 16'
	Falling inflation 'could help Brits save'
	Money worries 'are mounting for many'
	Contactless payment 'is secure and convenient'