Blow for savers as best buy deals disappear

Wednesday, 09 June 2010 12:03

By myfinances.co.uk staff

Savers already struggling to generate returns due to record low interest rates have been dealt another blow with the news that at least 12 best buy deals were recently withdrawn or altered in a single week.

Andrew Hagger of Moneynet.co.uk said that in the seven days from May 28th, financial institutions including Barclays, Nationwide, Northern Rock and Chelsea Building Society either scrapped market-leading products or "slashed" their returns.

ISAs and fixed-rate bonds were among the savings vehicles affected by the changes.

He added that consumers coming off fixed-rate products offering up to seven per cent annual interest who are looking to reinvest will be forced to join the "hoards of other customers chasing a handful of half-decent accounts".

"Until we see an upward movement from the 0.5 per cent base rate, there's little chance that savers will have anything to smile about," Mr Hagger warned.

The Bank of England is set to announce its latest interest rate decision at noon tomorrow (June 10th).

• Tags:
• news
,
• savings general