Debt management can help savers struggling with low returns
Debt management can help savers struggling with low returns
Wednesday 18th November 2009
More than three out of four accounts cost consumers rather than paying out to them in real terms, the Daily Express reports today (November 18th).
A combination of low interest rates, inflation and account taxes mean that many consumers are now losing out.
According to the news provider, a typical 'nest egg' account held by a pensioner containing £10,000 would now pay out just £3 to £4 interest after tax, as some savings rates are now as low as 0.05 per cent at high street banks.
State-backed banks such as Lloyds and Halifax are ranked among the most stingy with savings rates.
Taxpayers in the basic-rate band must look for rates of 1.875 per cent or abolve in order to stop their savings eroding in real terms, while higher-rate taxpayers need to find accounts which pay 2.5 per cent.
Those who are losing out financially because of low savings rates should consider talking to a debt management company.
Options such as debt consolidation loans and debt management plans can help people get back on the straight and narrow financially.
The Bank of England's base interest rate, set by its monetary policy committee currently stands at a record low level of 0.5 per cent, having been held at this figure since March.
However inflation, measured by the consumer price index, stood at 1.5 per cent in October, up from 1.1 per cent the previous month.
News article brought to you by Debt1 – Confidential Advice for Managing Debts
Related News
Low state pension may force many to get debt management - 13/11/09
Seven out of ten people think Britain is not doing enough for its retired population and three quarters believe there should be an increase in the state pension
Seven out of ten people think Britain is not doing enough for its retired population and three quarters believe there should be an increase in the state pension
'Shrinking wages' increase need for debt consolidation - 12/11/09
The pay gap between the super-rich and those on low or middle incomes is increasing and played a part in causing the global financial crisis, according to research published by the Trades Union Congress (TUC) today
The pay gap between the super-rich and those on low or middle incomes is increasing and played a part in causing the global financial crisis, according to research published by the Trades Union Congress (TUC) today
Repayments rise may necessitate debt consolidation for many - 10/11/09
The number of bad debts has reached a record high, which could push up the cost of having a credit card, research by a leading accountancy firm has found
The number of bad debts has reached a record high, which could push up the cost of having a credit card, research by a leading accountancy firm has found
Buyers may need debt advice to get on property ladder - 06/11/09
Demand is now exceeding supply across Britain's housing market, new figures from the National Association of Estate Agents (NAEA) shows
Demand is now exceeding supply across Britain's housing market, new figures from the National Association of Estate Agents (NAEA) shows
Rising rail fares may increase need for debt management plans - 04/11/09
The advent of Britain's first £1,000 rail fare has sparked anger over the rising cost of train travel
The advent of Britain's first £1,000 rail fare has sparked anger over the rising cost of train travel
News Article Search
Quick Apply
News Archive