Less Money Put Aside as Interest Rates Dive; PERSONAL FINANCE

The Birmingham Post (England), February 13, 2009 | Go to article overview
Save to active project

Less Money Put Aside as Interest Rates Dive; PERSONAL FINANCE


Byline: JOHN CRANAGE Personal Finance Editor

The amount of money flowing Into savings accounts has plunged as rates fall to record lows, a brace of surveys has shown this week.

Interest paid on with-notlce accounts dropped to a record low average of just 0.29 per cent in January.

The returns paid on branch-based Instant access and notice accounts, tax-free ISAs and bonds are all now the lowest since records began, according to the Bank of England.

But variable rate mortgage customers have benefited from the recent steep falls In official Interest rates, with Interest charged on both standard variable rate and tracker mortgages for new customers now also at record lows.

Perhaps not surprisingly, a second report showed that Individuals are now saving only about half the amount they were last year.

They are, however, dipping into their savings less, according to Birmingham Mldshlres.

The average amount put aside In the last quarter of 2008 fell to pounds 329 from pounds 644 during the same period In 2007, the Wolverhampton-based savings specialist said.

Over the same period, the amount of money withdrawn from savings accounts fell by 40 per cent, from pounds 506 to pounds 302.

Birmingham Mldshlres' survey found that only nine per cent of people raided their savings to buy luxuries during the final quarter of 2008, compared with 39 per cent a year earlier, while there has also been a steep drop in the amount of savings spent on holidays and going out.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

Less Money Put Aside as Interest Rates Dive; PERSONAL FINANCE
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?