Bank of England (BOE) reduced interest rate to 0:50% in 2009. It was supposed to be temporary measure to boost economy. It lasted seven years until it was further reduced to 0:25% to the delight of borrowers but dismay of savers with Hobson’s choice to OAP savers whose income have been decimated, forcing them to dig deep in their savings to make ends meet, depriving average household of £6000 in lost interest. It is indeed a shame on politicians who profess to be OAP friendly but ready to stab them in the back, although BOE is supposed to be independent! In order to seek reasonable reward, savers become victims of fraudsters who promise unbelievable high rate, losing their life-savings.
Government is launching lifetime ISAS next year which should be brought forward, along with pension bonds, offering reasonable interest rate, around 4% as per financial experts. As OPAs are most dedicated voters, they should be able to exert pressure on politicians, make them respect and treat OAPs fairly with balanced approach, especially as savers outnumber borrowers five to one. Perhaps AV should publish best interest guide to help readers get best reward on their savings.
Bhupendra M. Gandhi
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