Belfast Telegraph

A bleak winter for UK savers

Britain's beleaguered savers are holding out little hope of a happy New Year, having seen a "silent theft" on their cash pots caused by high living costs and low rates of interest on savings accounts.

The Bank of England's historic low base rate of 0.5% has meant that while those wanting to borrow cash have been able to take advantage of deals with low rates, many savers, particularly those approaching retirement, are feeling a distinctly bitter winter chill on their finances.

Danny Cox, head of advice at Hargreaves Lansdown, said: "2012 is looking pretty bleak for savers - interest rates are unlikely to increase in 2012 and virtually no accounts offer inflation-beating interest rates. However, inflation should fall which will improve the value of savings accounts."