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Britons have been hit in droves by the ongoing financial crisis, but many have used the lock-in period to increase their savings targets Some 73% of people used the lock-in as their chance to put in more money aside due to lack of expenses This stems from a number of reasons including not having to commute, make lunch at home, and stay home more
But an Atom Bank report also showed many Britons are missing out despite exceptional levels of savings
Half of the savers surveyed said they put their reserve money in an instant savings account to access it when they need it
Indeed, for many, this may be a wise decision, given the evolution of the financial situation of individuals
However, despite active savings choices, Britons are missing millions, report says, due to low savings yields
On average, Brits can expect to pocket a measly £ 194 each in interest, as most banks offer a 001% interest rate currently
Of course, this was affected by the Bank of England’s decision to lower its base rate to 01 percent, and the impact of providers has been palpable.
However, savers are also concerned about their money as it is and in the future
More than one in 10 savers surveyed believe they are at risk of losing money due to the prospect of negative interest rates in the future
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In recent weeks, a number of central bank policymakers have expressed support for negative interest rates as a potentially stimulating measure
However, BoE Governor Andrew Bailey insisted the measure was simply ‘in the toolbox’ with no plans for its use imminent
He said: « Banks have been taking customers for granted for years Lockdown has simply made this obvious
« The British have saved millions of dollars with little return on their efforts, while some of the UK’s biggest banks have even gone on to raise overdraft rates to an absurd flat rate of 40%
« People even store cash at home, rather than in a bank account, which shows how little they think they will earn by trusting the Big Six with their money
« The borrower should get a lot from the bank – whether to buy his house or to maintain and grow his business – but the saver should too
« It’s time to shine a light on the behavior of the big banks and do the right thing with our customers »
Despite a low return on savings, which can naturally dissuade savers from putting money away, a bank or a building society remains the key place to protect funds
Indeed, the Financial Services Compensation System (FSCS) insures funds up to £ 85,000 in worst case
But the limit is applicable per financial institution, so Brits should check if they have multiple accounts with the same banking group
For those who wish to continue to increase their savings, it is essential to seek the best rates
This may involve giving up bank loyalty to find the best option based on a person’s situation
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News from around the world – UK – Britons lose millions every year from extremely low savings accounts