The Great Debate UK
-Rachel Mason is PR manager at Fair Investment Company. The opinions expressed are her own.-
The base rate is going to be stuck at 0.5 percent for years to come, according to experts, so where does that leave savers?
Yes, the base rate needs to be low for any real economic recovery, and many mortgage holders can’t believe their luck, with many seeing their payments plummet. But there is always a flipside, and with a low base rate comes low savings rates.
With inflation up at 5 percent (as measured by the Retail Prices Index) it is impossible to get a savings account that even maintains the value of your money, let alone increases it, so what should savers do in such a low rate environment?