ISAs could be savers’ salvation - Savings - News - Moneyfacts


ISAs could be savers’ salvation

ISAs could be savers’ salvation

Category: Savings

Updated: 11/02/2010
First Published: 11/02/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Savers have been dealt a further blow after the Bank of England suggested interest rates could remain at 0.5% until next year.

Having sat at a record low since last March, the Bank's latest quarterly inflation report predicts base rate might not rise until well into 2011, as the economy continues its struggle to recover.

Returns on millions of savings accounts have slumped as a consequence, while another threat, in the form of inflation, could soon reduce the real incomes received even further.

According to the report, inflation is likely to have increased above 3% during January and is predicted to stay around this level in the near term.

The one crumb of comfort savers can currently rely upon is the imminent arrival of the 2010 ISA season.

Providers keen to secure their share of savers' cash traditionally offer improved rates around this time of year.

Savers over the age of 50 have this year seen their ISA limit rise from £7,200 to £10,200, of which up to £5,100 can be saved in a cash ISA.

The new limit will be applied to everyone from 6 April 2010.

Find the best savings accounts for you - Compare cash ISAs

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Savings rates plummet to fresh lows yet again

It’s becoming a recurring theme, and unfortunately, it’s showing no signs of stopping. Savings rates have plummeted to fresh lows once again as the impact of the base rate cut continues – and this month, product availability has followed.

Less than half of savings accounts beat inflation

Official figures show that inflation jumped up during September, with CPI rising to 1%. Not only does this mean that consumers may begin to feel the impact on their wallets, but there are now far fewer savings accounts that will beat inflation.

Number of savings accounts falls to record low

As if the continued drop in savings rates wasn’t bad enough, our latest research reveals another blow to already hard-pressed savers, with the number of accounts available having fallen to a record low.