‘Attractive!’ Building society hikes rates on savings accounts – does it beat inflation?

‘Attractive!’ Building society hikes rates on savings accounts – does it beat inflation?

Myron Jobson, a senior personal finance analyst at interactive investor, shared how inflation and the current cost of living crisis is hurting savings accounts.

Mr Jobson said: “Borrowing increased amid the biggest fall in living standards in generations, but while overdraft levels rose gradually in Q2 this year, it remained five percent below pre pandemic levels – suggesting that Covid and the cost-of-living crisis have made many people re-evaluate their spending and savings habits.

“People understood the squeeze on household budgets is only going to get worse this year, with inflation expected to rise further – although not as high as feared once the new energy support measures come into play.

“For many, taking out more debt would add to the already weighty pressure on their budget.”

Published at Mon, 12 Sep 2022 20:19:03 +0000