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Nevertheless, the arrival of negative interest rates for banks, together with new rules allowing governments to bail-in – ie confiscate – deposits above a protected minimum, are certain to increase savers' awareness of the value of cash, and will prompt calls in earnest for its abolition.
Similar(59)
Low interest rates act like a tax increase on savers and pensioners, by reducing their income.
Desperate to increase returns, savers have been reaching into the refuse bin in search of yield.
Nationwide's position was strengthened by a £4.9bn increase in savers' deposits to £130.5bn, equal to a 12.1% share of the total savings market.
Even when rates do rise, we can reasonably expect it to be a relatively slow process and it seems just as likely that many providers will take their time to pass on the increases to savers.
Although the increase of younger savers opting in may provide a stronger case to make sustainability a priority, she added.
Mrs. Whitman has adopted Mr. DiFrancesco's New Jersey Saver increase, officials said.
Deregulation of interest rates, which should have increased returns for savers, indirectly brought them down.
Savers increased their Isa contributions by £20bn in 2015, but a law has had to be passed to make people save into a pension.
The move is said to reflect research Oval Money has conducted into the "increasing appetite younger savers have to invest in causes they believe in, rather than basing decisions only on traditional risk-return factors".
He said although he had "deep sympathy" for savers, increasing interest rates from their record low levels to help them could be counterproductive as it would damage the fragile economy.
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