Keep It In A Jar

Eight in 10 savings accounts LOSE cash: Inflation goes up - but banks still pay interest rates just above zero

"More than eight in ten savings accounts are paying such a paltry interest rate that customers are effectively losing money, research revealed yesterday.
Financial experts said savers have become the 'sacrificial lambs' of the Bank of England's desperate attempts to rescue the economy.
Because the Bank has held down interest rates, the value of their savings is not keeping pace with inflation, so savers are losing money in real terms.
The situation is worst for higher rate taxpayers for whom more than 90 per cent of deposit accounts give a negative return.
Banks which are part-owned by taxpayers, such as Halifax and Lloyds, are among the worst of the 'savings sinners', paying rates as low as 0.05 per cent.
For a basic rate taxpayer with a £10,000 nest egg, this is worth £4 a year after tax - or £3 for a higher rate taxpayer."