It’s been a miserable few years for savers. But new Bank of England governor Mark Carney has offered a glimmer of hope by scaling back the Funding for Lending Scheme (FLS).
Since its launch in 2012, savings rates have dropped by up to 1.5 percentage points. That’s because banks and building societies have been able to access cheap finance to support mortgage lending, rather than compete for savers’ funds.
According to Moneyfacts, the consumer website, best-buy instant-access rates have fallen to 1.6%, well below inflation.
But now analysts reckon competition for deposits could pick up. Cash returns might [...]
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