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How beneficial are savings accounts

September 22, 2010

How beneficial are savings accounts

Putting money away into savings accounts is not as profitable as it used to be.

This is because savers have been hit hard in the present economic climate, as returns on investment continue to dwindle.

Jason Riddle, co-founder of action group Save Our Savers, pointed out that another contributing factor was the decision of the Bank of England to let inflation continue at its high level, to help ease the burden of the public and private sector debt.

"Savers who have always managed their budgets with an eye on their future financial position - in the same the way the government is trying to do now - are seeing their efforts undermined as the real value of their savings decline," he said.

Recent figures released by the Office for National Statistics show that the Consumer Price Index annual inflation was unchanged at 3.1 per cent in August from the month before. 

This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.

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