Savings are being hurt as many must dip into them to make ends meet in this economy.
Savings are suppose to be put aside for emergencies or for future expenditures, such as a new car, or a deposit on a home. Savings can also be put aside to make retirement easier. However, in new data released it has revealed that no matter the original purpose of the savings for many it has become the supplemental source to getting by.
The Bank of England base rate may stay low for a number of years. Due to the current government’s policy of fiscal tightening there will be slow growth over the next two years or more said Ernst & Young Item Club, an independent economic forecasting group.
A new research report from Tesco Bank indicates that British parents are doing a good job at teaching children about the importance of savings. They are also going beyond savings and educating them about income and expenditures. Children that learn these lessons early in life benefit as adults.
Official figures have revealed inflation in the UK has fallen for the second month in a row in June. This will benefit those holding savings accounts.
HSBC has warned savings investors with maturing fixed rate products that they need to consider alternate reinvestment strategies. According to the bank, over 2.7 million fixed rate products have matured this year. There is a 5.5 million total expected to mature for the entire year.
ISA accounts will now have quicker transfers between old to better paying accounts.
