----class 46----- Couple 27 ------------------- Savings rates have continued to fall in 2014 despite the scaling back of the Government’s Funding for Lending scheme initiative at the end of January, data has found. Support for the scheme, which helped kick-start the housing market, was wound-down after an announcement in November 2013 meaning banks and building societies were instead incentivised to focus more on lending to small businesses. At the time of the announcement, a wave of experts predicted there was only way for savings rates to go – and that was upwards, while mortgage rates were expected to rise. However, now the dust has settled, financial information website Moneyfacts has found average rates across virtually all savings products have continued to fall. The Banks £80billion scheme helped drive home loan rates to record lows last year, but at the same time decimated returns on savings. The scheme has been blamed for making the plight of savers - already suffering a record low base rate - worse because it has given banks access to cheap funding for loans, making them less reliant on having to attract savers deposits via competitive rates. Read more: thisismoney.co.uk/money/saving/article-2711760/Savings-rates-continued-plummet-year-FLS.html#ixzz39NsE2LJ6 Follow us: @MailOnline on Twitter | DailyMail on Facebook
Posted on: Mon, 04 Aug 2014 01:55:29 +0000
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