Savings accounts losing value, claims Save Our Savers representative

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Savings accounts losing value, claims Save Our Savers representative

Mon 20th Sep 2010

A Save Our Savers representative has suggested people who have managed their money responsibly are losing out as a result of the current low-interest environment.

Jason Riddle, co-founder of the campaign group, explained the real value of the public's savings is declining as a result of inflation.

"The Bank of England is continuing to let inflation run above target in order to do its job of eroding away at the huge pile of private and public debt," he said.

In his opinion, the people who are suffering are those who previously kept their future financial position in mind, only for their efforts to be undermined by government policy.

Mr Riddle suggested the state is rubbing salt into the wound by insisting on charging tax on the low amounts of interest being accrued in savings accounts.

The consumer price index has held steady at 3.1 per cent through July and August, while the retail price index dropped by 0.1 percentage points to stand at 4.7 per cent in the latter month.

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