Many savings accounts `to offer no interest`

10 March 2009

Almost half of all savings accounts will offer absolutely no interest as of next month, according to The Times, following the Bank of England`s latest base rate cut.

With the base rate currently standing at 0.5%, there`s simply less scope for savings account providers to pay interest.

Financial experts have warned that savers may be forced into `riskier investments` if they are to stand any chance of better returns, says The Times.

Analysts had previously warned that savers would be left out of pocket by a further base rate cut, and people dependent on interest from their savings as a source of income could face financial worries or even debt as a result.

A spokesperson for debt management company Gregory Pennington said: "Saving has become less appealing to many as rates have fallen, but it can still be a very important part of people`s finances.

"Regardless of interest rates, having savings can be a very useful financial `safety net` that can prevent people getting into trouble with debt if any unexpected expenses arise."

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Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

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