Another rate cut

For the fifth month in a row the Bank of England has cut the base rate. The Bank of England base rate now sits at just 1% which is the lowest rate ever.

The main reasons behind the base rate cut was to try and stimulate the economy by giving more money to people through reduced mortgage payments for them to spend which in turn will lead to businesses prospering and requiring to take on additional staff.

Unfortunately as well as saving people with mortgages money it also has the opposite affect on savers and particularly thoses savers such as pensioners who rely on the interest earned on their capital to live on. These people have now had to start using their capital which in turn means they will earn even less income until interest rates start to rise again and this is unlikely in the immediate future.

If you do have savings then it is recommended you find out what the interest rate is on your account and shop around for a better deal. Remember just because you got a good rate when you opened the account several years ago doesn't mean it is still a competitive rate today.