Saving for a rainy day has become something of a wash-out. The government's quantitative easing programme has fueled inflation, sending living costs up and up, while the BoE's 0.5% interest rate squashes any kind of decent return on savings.
The number crunchers at UHY Hacker Young have worked out that some £115bn is sitting in accounts with zero interest in the UK. And even savvy savers, using traditionally higher interest accounts such as Isas, are losing money, earning just 2.86% a year on average.
'Savers are losing a staggering amount of money as inflation slowly erodes away billions from the nation’s savings,' says Mark Giddens, partner at UHY Hacker Young. 'Central banks are doing all they can to keep interest rates low and that feeds through to deposit rates. This intervention ensures savers are unlikely to see rates raised in the near future.'