Louise Bond, Personal Finance Manager at uSwitch.com comments on today's base rate decision

Louise Bond, Personal Finance Manager at uSwitch.com comments:

"Today's base rate reduction could be described as the final nail in the coffin for savers.

With the average savings rate at just 0.81% APR, a further drop of 0.5% will more than half this to just 0.31%.

This means that people with the average savings balance of just under ?3,000 will get less than ?10 a year in interest - a minimal return.

Going forward, if we experience one more decrease this year it could mean 0% savings rates for consumers.

"More now than ever we strongly urge consumers to secure one of the few competitive deals that are still available before they disappear.

Savers that do not need to access their money for the next 12 months can opt for Abbey's table topping Super Saver issue 5 which currently pay 5% APR.

With this fixed rate, consumers with the average savings balance of ?2,813 are guaranteed to earn almost ?141 in interest in the next year.

For people that cannot afford to lock their money away for a year, there are still some good deals available paying more than 3.5% APR.

Citi FlexiSaver 4 currently offers 3.56% APR, which on the average savings amount of ?2,813, consumers could earn ?100 if rates remain the same.

However, all variable rates could be subject to change in the event of further base rate decreases.

"Consumers need to stand up to the providers and take action.

By not searching for the best deals they are letting their providers get away with levels of customer service that a well below par, while customers remain so will the shoddy service.

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