Thursday marked the 10th anniversary of the Bank of England Monetary Policy Committee last putting up interest rates.
Shakila Hashmi, head of money at comparethemarket.com, said: “While the last decade may have been good news for mortgage holders, it has been disastrous for savers. This anniversary is a stark reminder of just how long we’ve been in this, now normal, low interest rate environment, which has led to the majority of savers losing money year on year.
At present there are no savings accounts which offer interest rates above the current inflation rate of 2.9%. Those looking for high interest earning, instant access accounts may be best off considering current accounts such as the Nationwide FlexDirect Account, offering 5% AER on balances up to £2,500, or the TSB Classic Plus Account, offering 3% AER on balance up to £1,500 or the Santander 123, which pays 1.50% AER on balances up to £20,000.
However, it is worth noting that some of these are only available over a limited amount of time and are subject to taxation. Whichever way you look at it, savers’ options for favourable cash-based returns are severely limited.”