Working Lunch reported today that it’s a bad time for savers. No surprise here really, with the Bank of England continuing to lower its base rate of interest in an attempt to kick start the economy and allow people to borrow again. Savers are currently faced with the problem of a poor rate of interest on their money which is getting worse by the week, and with inflation higher than current interest rates, many savers are actually making a loss on the money they have in the bank. Not to mention the fact that the banks are hardly the safest places for a saver’s cash right now, being bailed out by the gobernment left right and centre.
David Braithwaite from Citrus Financial Management appeared on Working Lunch today to talk about the current savings account predicament. He urged savers to be ‘on the ball’ when it came to keeping an eye on savings rates, bonus rates and savings terms in order to get the very best return on savings in today’s difficult financial climate.
Cash ISAs were also mentioned. It’s important that as a saver you use up your cash ISA allowance if at all possible – it’s tax-free savings at a decent return compared to other investments you could make right now. The advice from David Braithwaite was to shop around for the best cash ISA and then fill your ISA if possible before April, when the tax year starts again.
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