When interest rates are low does it make sense to save?

These are lean times if you are a saver with interest rates at historically low levels after the financial crisis. And in the wake of the UK’s vote to leave the EU the Bank of England has cut its base rate to just 0.25 per cent it can t really go much lower. While borrowers are enjoying an unparalleled run of low repayment rates, savers are paying the price for this. Rates on savings accounts in the UK are as low as 0.01 per cent.  If you ve got £10,000 to invest and put it into an account yielding 0.01 per cent, then after a year you would have earned just £1 in interest. The highest rates on offer are currently around 4 per cent but these represent a tiny proportion of the market. The average interest rate in the UK on savings account is currently just a shade over 1 per cent. This level of interest doesn t even cover inflation (RPI) which is currently running at 1.5%. The basics of saving If you ve got money tucked away already, then the first thing that you should do is to ch


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