Savers pull £43bn from fixed-rate accounts Bank of England reveals record withdrawal as customers pick easy-access deals in the hope of better offersSAVERS have given up chasing the highest interest rates, by moving money from fixed-rate accounts into those that pay little or no interest but have fewer restrictions. They are gambling millions in interest in the belief that a shift from the historic Bank rate low will prompt a flurry of new deals from banks and buildings societies. Savers withdrew £42.6bn, or 15.2%, of the money held in fixed-rate and notice accounts last year, according to the Bank of England. It is the largest fall since comparable records began in 2008. About £6.6bn was withdrawn in December alone, the biggest ever monthly decline, amid speculation about a Bank rate rise. However, the total amount held by banks and building societies rose 3.6% to £1.1 trillion last year, as savers shifted to easy-access and current accounts with rock-bottom rates but fewer restrictions on withdrawals and switching elsewhere. (the times)
Posted on: Sun, 02 Feb 2014 17:20:35 +0000
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